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> Imagine if JP Morgan Chase's entire value was in JP Morgan Chase stock, It's way worse. JPM stock pays dividends in dollars. The yield on FTT is more FTT.
by funstuff007 4y ago
> Imagine if JP Morgan Chase's entire value was in JP Morgan Chase stock,
It's way worse. JPM stock pays dividends in dollars. The yield on FTT is more FTT.
- nroets 4y agoA predetermined percentage of FTX fees is used to buy back FTT which is then "burnt". Open market buy backs are equivalent to dividends. So FTT has a yield measured in dollars.
- funstuff007 4y agoBut you never get access to those dollars. You end up owning a scarcer magic bean. And dividends are not equivalent to share buy backs--both from a tax perspective and from a forced diversification perspective.
- HDThoreaun 4y agoFTT did buybacks which are much more popular than dividends because of their tax advantage.