7986 South Datura Circle West
Littleton, CO 80120
(303) 683-3338
Categories Menu

Posted by on Apr 1, 2011 in CONFUSING MONEY | 0 comments

Changes in stock quoting throws system into confusion

On the Money From the  April 1, 2011 print edition A recent change in how some over-the-counter (OTC) stocks are quoted caused lots of distress for their investors — who wondered if their stocks had disappeared, stopped trading, been delisted or otherwise had vanished from the trading platforms. The situation started in September 2009, when FINRA (Financial Industry Regulatory Authority), which owns and operates the OTC Bulletin Board, announced it wished to sell it. But FINRA hasn’t been able to sell the OTCBB, and many nervous broker dealers left that exchange starting in January. That’s left many companies with no representation on the OTCBB, resulting in them being pushed down to the less-prestigious Pink Sheets. The OTCBB has been identified with companies that fully report to the Securities and Exchange Commission, and the Pink Sheets with companies that don’t report. Until recently, most small, fully reporting issuers believed they were being listed exclusively on OTCBB, owned by FINRA. However, to their shock, many learned their shares simultaneously were trading...

Read More

Posted by on Oct 5, 2007 in CONFUSING MONEY | 0 comments

Government offers financial literacy campaign

On the Money From the October 5 2007 print edition In 2003, the Fair and Accurate Credit Transaction Act (FACTA) was enacted. It included the formation of the Financial Literacy and Education Commission. Given the recent turmoil in the credit markets, let’s examine what the commission has to offer. The legislation states, “The Commission shall serve to improve the financial literacy and education of persons in the United States through development of a national strategy to promote financial literacy and education.” Twenty federal agencies contribute to the commission. To reach the widest number of people possible, the commission established a Web site (www.MyMoney.gov) and a toll-free telephone number (1-888-MYMONEY) to coordinate the presentation of educational materials from the federal agencies that deal with financial issues and markets. There are 11 categories, each with plenty of information, including budgeting and taxes; home ownership; privacy, fraud and scams; and starting a small business. Additionally, the Web site provides tools and resources, including financial calculators, financial education grants, member agencies and public service announcements....

Read More

Posted by on May 16, 2003 in CONFUSING MONEY | 0 comments

Trying to comprehend the dichotomy of dividends

On the Money From the May 16, 2003 print edition For years there has been a dichotomy surrounding dividends. Fundamentally, it’s because while dividends represent an attractive characteristic for investors seeking income (rather than growth) from their portfolios, dividend payments are not a tax-deductible expense for the company issuing them. At the same time, dividend income is taxable to the person receiving them at the time of delivery. This creates the infamous “double dividend tax.” Another way to look at it is Company A earns $100, pays out $25 of tax-deductible expense, pays tax on $75 at 34 percent of $25.50 leaving a return of $49.50. Company B earns $100, pays tax on $100 at 34 percent of $34, and then pays a dividend of $25 making its return $41; $8.50 lower than Company A with the same earnings. In addition, the receiver of the dividend from Company B pays tax on $25 as income. To maintain “tax efficiency” corporate tax avoidance (not to be confused with evasion), has increased. Firms are...

Read More