No companies actually make money they simply issue new equity in order to pay the astonishing dividends that their existing investors have become accustomed to.
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Few realise this but when you receive a dividend from your S&P 500 ETF it is being paid directly by the recent subscriptions of new investment, mediated by the AP mechanism obviously. This is why you should always buy the distribution rather than accumulation shares.https://twitter.com/UnHedgedChatter/status/1370714649885298688 …
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Sorry what does buy the distribution rather than the accumulation mean.
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Accumulation share class = dividends get reinvested automatically Distribution = paid out to the holder ie ETF w/ 1 usd / share and paying 0.01 per share div => owning 100 shares results in (assuming no taxes or fees) 1 share being bought on div date
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And I thought the technology industry was bad about acronyms. Fintwit is worse. Your audience would benefit from expanding them.
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No. The fewer people who get my jokes the better.
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Only 21 million SPY shares will ever be produced.
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did not know that ... will ea sh get to 60k in 3 wks?
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Taxes though?
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Is this the same guy that said cash is trash a little over a year ago?
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