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To: clochard who wrote (72323)2/27/2001 12:23:20 PM
From: Andrew G.  Respond to of 436258
 
Almost every DOW component except XOM is flying upward right now. What gives ?

"double taxation on dividends should be abolished"
I agree. It kills the benefit of dividends. Overall, we are severely overtaxed and regulated.



To: clochard who wrote (72323)2/27/2001 2:14:11 PM
From: Mark Adams  Respond to of 436258
 
This sounds nice on the face of it, but in many cases management is motivated to get bigger and will want to retain earnings for m&a. This results from the mutual funds shunning anything below a certain market cap, the executive compensation being tied to compensation of companies of a similar size and less obvious desires related to empire building.

In this respect, you might say our market as it exists today may distort the economy by encouraging large scale operations when medium or small scale might be more appropriate for particular niches.

My pet idea is that the double taxation on dividends should be abolished. This would encourage companies to pay dividends and investors to buy profitable companies. All the hype about future earnings potential would be avoided as investors would focus more on the present reality.