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Overnight Open Thread

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Obdicut (Now with 2% less brain)9/19/2011 11:21:14 am PDT

re: #291 allegro

If, over the course of the life of the ownership of the stock, dividends were paid out that never recouped the purchase price, it’s possible that the sale of the stock plus the dividends would not equal the purchase price of the stock.

But you’re never forced to sell stock. And if you do, and it sells for less than what you bought it for, then you can claim that as a capital loss— without accounting for how many dividends you got over the years.

And you’re never forced to sell your stock.

It’s like saying that getting rent from an apartment building you own isn’t profit, because the building depreciated in value over the years.