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Strategies & Market Trends : Dividend Investing -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (74)	3/6/2000 9:20:00 PM
From: Volsi Mimir	Respond to of 387

Howdy, Happen to know anything about WEBBS especially Belgium - EWK. The dividend is 4.23 (according to Yahoo) and its at its 52 week low....12 3/16 I never traded WEBBS to know exactly what happens (read Q&A below). And if the dividends are paid quarterly or such. Sounds interesting but too good to be true. Anyone buy these? TIA I did go to the NASDAQ-AMEX site on WEBBS and found some answers, yet not definite figures especially NET dividend return as opposed to GROSS dividend shown.... Heres the Q&A from Nasdaq and the site. options.nasdaq-amex.com WEBS - Dividends and Capital Gains Q. When are dividends and capital gains paid on WEBS? A. Dividends and capital gain distributions will be payable at least annually, and will be distributed to investors in U.S. Dollars. Dividends may be more frequent than annually for certain WEBS Index Series. Q.Can WEBS dividends be reinvested? A. Dividends may not be automatically reinvested in WEBS shares of a WEBS Index Series at this time, although investors may always purchase additional WEBS in the secondary market with distributions received on their existing WEBS. Q. What is included in WEBS' accrued income? A. Net investment income from dividends, interest income, securities lending income and net gains from currency transactions, less WEBS Index Series operating expenses, plus net short-term capital gains. Q. Is income commingled among WEBS Index Series? A. No. However, the WEBS Index Series share certain expenses incurred at the Fund level. Q. Is there any withholding tax on income? A. Dividends on the portfolio stocks held in each WEBS Index Series may be subject to foreign income taxes withheld at source. There should not be any further withholding tax on distributions to WEBS investors who are US. investors and who complete all required US. tax forms. Foreign investors will be subject to U.S. withholding tax on WEBS' ordinary income dividends at a 30% rate or lower, pursuant to the relevant tax treaty. Each WEBS Index Series will flow through such withholding taxes to its shareholders, who can choose to either deduct or credit them against their U.S. income tax liability. Q. How are dividends and capital gains treated for Federal income tax purposes? A. Tax treatment is comparable to an investment in a mutual fund that invests in foreign securities. Dividends paid out of a WEBS Index Series' net investment income and distributions of net realized short-term capital gains are taxable to a U.S. investor as ordinary income. Distributions of net long-term capital gains, if any, in excess of net short-term capital losses, are taxable to a U.S. investor as long-term capital gains, regardless of how long the investor has held their WEBS. Dividends and distributions paid by a WEBS Index Series will not qualify for the deduction for dividends received by corporations. Distributions in excess of a WEBS Index Series' current and accumulated earnings and profits will be treated as a tax-free return of capital to each WEBS Index Series investor, to the extent of the investor's basis in their WEBS, and as capital gain thereafter. Gains or losses realized upon a sale by a holder of WEBS or redemption by a Creation Unit holder who is not a securities dealer, will generally be treated as a long term capital gain or loss if the WEBS or Creation Unit has been held for more than eighteen months, and will be treated as a mid term capital gain or loss if held for the period of one year to eighteen months. If the WEBS or Creation Unit has been held for less than one year, the gain or loss realized upon a sale will be treated as a short term capital gain or loss. Q. Do investors receive the gross amount of all their WEBS Index Series' dividends and capital gains? A. No. Expenses are deducted daily against each WEBS Index Series' income flows. Q. Where can I find the record date for a WEBS Index Series? A.They will be announced in accordance with applicable AMEX requirements.