Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Let's Talk About Our Feelings!!! -- Ignore unavailable to you. Want to Upgrade?

To: MSB who wrote (14437)	12/23/1997 11:49:00 PM
From: JF Quinnelly	Read Replies (1) \| Respond to of 108807

You're gonna get $5.50 per share, if you still have your stock as of January 2nd. The $5.50 exceeds the earnings of last year, so whatever part exceeds last year's earnings is counted as a "return of capital" and won't be taxed (unless your cost basis is very low due to previous capital payouts, options exercises, or stock splits). Utility stocks used to pay out more in dividends than the companies earned, and the excess payout was considered a "return of capital". You only pay tax on earnings, and not on your capital being returned to you. Cherokee is doing something similar here, although it appears to be a one-time event.