Question about Stocks
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- mg33
Saw this article about Apple's Tim Cook today.
http://hosted.ap.org/dynamic/sto…
Not being very knowledgeable of things like this, can someone explain to me how exactly someone in this position - rich as holy fuck - would be able to live a lavish lifestyle and have anything they wanted when the majority of their wealth was in stocks?
I'm assuming that to have the money tied to the stock, you'd need to sell it right?
Let's use Jobs for an example: If he made a $1 a year salary, and his only other wealth was his billions in Apple stock, how did he tap into the stock to use that money?
- ********0
1. borrow money with stock as collateral
- sine0
yep, credit.
- ********0
the jobs example is off, jobs had stock that pays dividends, disney f.ex.
- mg330
Thanks, that all makes sense.
- ********0
What do you mean man? He cashes in as he sees fit, this is how most CEO's do it. You can easily use your credit to live off of and then pay it all back, per your discretion. It's all moot at that level.
- Amicus0
Where's Hedge when you need him?
- monNom0
Capital gains on stock is taxed at a lower rate (like 15% rather than 33%), so effectively he pays less tax for equal compensation.
CEO's and other special people may also receive special 'preferred' shares that pay a dividend even if common stock does not pay one.
- otherwise they'd be paying taxes on the same income over and over again, it has to be lowermonospaced
- wouldn't they only pay tax on the capital gains if/when they sold the stock?Amicus
- ********0
this is why the rich get richer
- canuck0
fucking 1%;'er
