3 ms·
I don't think that's accurate if we're talking about large publicly listed companies, the only way for shareholders to spend the money on themselves is to take
by fighterpilot 5y ago
I don't think that's accurate if we're talking about large publicly listed companies, the only way for shareholders to spend the money on themselves is to take it out via dividends or sell the stock for a capital gain.
- Nicholas_C 5y agoShareholders can take out a loan for spending money that uses the shares as collateral.
- fighterpilot 5y agoTo pay back the loan they need to sell the stock which is a capital gains event. The two main tax avoidance strategies would be people running and retiring overseas just before selling, or never selling and waiting for the cost basis to be reset upon their death.