With a tax cut looking more and more likely, and the Fed lowering interest rates three times in three months, a timely study of the historical effects of tax reduction and easier money on the stock market. Most investors sense that volatility is up and believe that the rise has implications for portfolio construction and the market in general. The Impact of Stock Splits On Performance Stock splits increase each investor's number of shares by a corresponding reduction in share price. Perhaps you came by your large position in one stock through shrewd investing, a tax-free exchange for your business or by way of executive comp. Whatever the source, you know it s risky for one company to hold sway over your financial well being, but you don t want to pay the large tax that would come due if you cashed in some of your gains.
Most people focus on their gross investment returns before costs.
But obviously, the costs of investing should be considered, too, and the biggest cost by far is taxes. The bull market and online-trading phenomena are two sides of the same coin, and many forecasters expect more of both. But there are signs to the contrary as well. Online trading may be dangerous both to the market and to participants. Investment recommendations made in research reports distributed by SCB to its institutional brokerage clients may differ from those initiated through our investment-management process.