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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Victor Lazlo who wrote (25692)	7/25/1999 10:24:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 93625

Victor, if these funds were paid to you as dividends, you would have paid normal tax on them (earned income), if the company uses these funds to buy back shares (and thus increase your share of the company by the percentage of shares they bought), you do not. You own a piece of the company, that piece has grown, it is irrelevant if you sold or not (it might be as far as market timing etc.). MRK has bought back some $8 billions worth of shares in the last two three years, this, IMHO, was a tax free dividend (Thank you MRK). Zeev