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>They'll need to pay taxes on the realized gains The bulk of the holders of stock in most public companies are institutional investors that don't need to pay t
by alasdair_ 5y ago
>They'll need to pay taxes on the realized gains
The bulk of the holders of stock in most public companies are institutional investors that don't need to pay taxes on the realized gains.
- akvadrako 5y agoWhy don't they pay taxes on realized gains?
- ceejayoz 5y agoBecause they're largely managing tax-advantaged accounts.
- deleted 5y ago[deleted]
- s1artibartfast 5y agoBecause they are taxed on annual profit, not capital gains. If they sell a stock and buy a different one, there is no profit. The private analogy is a professional gambler. You don't pay taxes for winnings on each bet. You pay taxes on what you have cashed out at the end of the year. Tax on individual sales is only a thing for individuals.
- edgyquant 5y ago> institutional investors [] don't need to pay taxes on [] gains. Elaborate