Re: FROM DM LEGAL TEAM: CLAIM 1 &19 OF PATENT "774" REMOVABLE FLASH MEMORY
posted on
May 04, 2011 10:09PM
The problem with a dividend is Income tax. A stockholder might be underwater on his investment and still have to pay tax on the dividend. It cannot be offset by more than $3k capital loss. If the company uses the money for buyback, causing a share price increase it leaves the investor in control when to take a capital gain or offset a large loss.