Corporate Actions & Tax
Dividends, splits, buybacks, and the tax treatment of it all.
What a company does to its own shares, and what the tax code does to your returns, both land in this topic.
It covers the corporate actions that can move a stock overnight: dividends and their key dates, stock splits, buybacks, and the rights issues that dilute existing holders.
Then it turns to the tax side, from the 1099 forms that report your income to the treatment that determines what you actually keep.
Investing With Purpose makes the mechanics concrete, so you can read an announcement and know what happens to your position and your tax bill.
The aim is simple: understand the events that change your holding before the market and the tax authority do.
Start here
A dividend is a portion of a company's profit paid out to shareholders, authorized by the board of directors. It is one…
A stock split is a corporate action that changes the number of shares outstanding and the price per share in lockstep,…
A share buyback is when a company uses its own cash to purchase its own shares, reducing the total shares outstanding.…
A capital gain is the profit you make when you sell an asset for more than you paid for it. How that profit is taxed…
Tax-loss harvesting is the practice of selling a losing investment to realize the capital loss, using that loss to…
A Roth IRA flips the traditional retirement bargain: you pay tax on the money going in, and in exchange everything that…
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