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| deprived |
 Posted: Sun May 28, 2006 5:44 pm Post subject: stock funds |
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Investing Sr. Associate
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Does the growth funds pay out any dividend/earnigs?
If it does does that payout get reinvested into the funds and how do they report this to the holder? |
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| efflandt |
| Posted: Mon May 29, 2006 5:52 am Post subject: |
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Investing Manager
Joined: 01 Oct 2005
Posts: 206
This Month: 0
Location: Elgin, IL USA
76551.82 e$
Net worth: 126,346.52
Portfolio Value: 49,794.70
Monthly Return: -6.94%
Trades this month: 0
Churn Rate: 0.00%Items
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Dividends are not a primary consideration of "growth" stocks, with the hope that they reinvest their earnings wisely to increase their earnings.
The fund prospectus should spell out when they typically distribute any div/earnings or capital gains. Whether that is reinvested or pays out as cash depends how you set up the account that the fund is held in. Payout from mutual funds is typically reinvested, but you should be able to change that for specific funds or default for your account.
The cash reinvestment or cash payout should show in your account history or statement. For a taxable account it would also be reported on one or more 1099's after end of yr, so you can account for them when you file taxes.
What got my boss hopping mad was when his fund lost money one year (decreasing NAV), but he still had to pay capital gains tax. |
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| nickspcs |
| Posted: Fri Jun 02, 2006 12:43 pm Post subject: |
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Investing Sr. Associate
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| WOW, efflandt knows alot about the market, I think I will be monitoring his posts so I can pick up a few more tips! |
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