Introduction To Technical Analysis Price Patterns
To “find your game” in technical analysis, you need to be able to recognize reversals and continuations as they form.
A Guide To CEO Compensation
Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder.
What are Income Shares?
Income shares are one of two types of stock offered by a dual purpose fund to investors. These provide income to the investor and are determined as a portion of all the income earned in the portfolio. They are paid out on a regular basis.
Income shares are offered in cases where the fund has only a small chance of capital appreciation. The income paid to investors is generated through dividends based upon the way the fund performs. The dividends are based upon the net earnings of the fund. The income is offered as cash or can be reinvested based upon the desires of the fund holder. Dividends are traditionally paid out quarterly, and are considered taxable income.
Because the shares provide income they are well suited to investors who are not looking for long term capital appreciation but would prefer a steady stream of income instead. The owner of the fund receives both the income generated as well as any additional returns available when the fund is dissolved.
While these funds don’t have the same rate of growth as high risk investments, they are considered a good choice for people approaching retirement. Relatively safe even during market and economic fluctuations, the most common risk is that the fund will stop paying dividends if it is no longer profitable. Funds retain the right to cease payment whenever necessary; therefore if this income is needed for regular expenses it may not be an optimal selection.
The other type of share a dual purpose fund might offer is capital shares.
—
Related Articles at Investing School:
- What is Operating Income
- What is a Preferred Stock
- Net Income
- Earnings Per Share (EPS)
- What is a Fractional Share?
Why Do Investment Firms Issue 1099 Forms?
A 1099 form is used to report payments made to independent contractors or for reporting interest earned on bank accounts and investments. As such you would receive a 1099 if you earned income on any of your investments in the previous financial year.
The company completing the form provides copies of the 1099 to both the recipient of the payments and to the IRS, as well as local taxing bodies and the residential state. Failing to report income from a 1099 is a red flag for the IRS and is likely to generate an audit.
Investment income reported upon the 1099 includes dividends and similar payments issued throughout a specific tax year. The income is considered one of the investor’s tax liabilities.
There are actually several different types of 1099 forms, depending upon your investments, employment situation and other factors:
A 1099-R reports upon payments from profit sharing plans, IRAs, annuities, insurance contracts or pensions.
A 1099-INT breaks down the different types of interest income and its related expenses. These are issued when at least $10 of interest has been earned during the course of the year.
A 1099-Misc is used to report non-employee compensation.
A 1099-B summarizes the proceeds of a stock transaction.
Brokerages, investment firms and employers are required to send out these forms by January 31 of the current year in order to allow recipients to file their taxes properly. Some companies provide links to the forms on their websites as well, allowing investors to access them at all times.
—
Related Articles at Investing School:
- What is a Ventual Capital?
- Ins and Outs of a Stock Exchange
- What is Share Repurchase?
- What is Direct Marketing?
- House Rules