Pulling Keynes' teeth | 26 comments (26 topical, editorial, 0 hidden)

Re: Pulling Keynes' teeth (none / 1)

If you want to play with share definition, here are a few things that I would suggest:

right now when an individual buy shares indirectly (mutuals funds, retirement invested in stock, ...) two rights are transfered: the right to choose what stock to buy (let's say rightly so) and the right to vote at shareholder meetings. I would cancel this second right: your money manager does the stock picking, but you get to vote.
currently to get a dividend from a share, you just buy it at the right date five minute before closing and sell it the next day, you get the same dividend as someone who held the stock for a full quarter/year or more. I would link the dividend paid to a given to the time the holder hold on to the share.

by Laurent GUERBY on Sun Sep 10th, 2006 at 04:34:30 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

Especially the first is extremely important. I'll put my thoughts on that together later.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Sun Sep 10th, 2006 at 04:38:00 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

Thanks! Ping me if I don't react :)

by Laurent GUERBY on Mon Sep 11th, 2006 at 06:35:54 AM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 1)

As for dividends the effect you are describing it is usually factored in to the price. So the day after the dividend is declared the price drops by an equivalent amount. If the dividend is only a few cents per share the effect may not be noticeable on a volatile stock.

Most bonds are traded so that interest is figured daily and the buyer has to pay the seller the proportionate amount of accrued interest which they get back along with the interest from the rest of the period at the next payment date.

Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Sun Sep 10th, 2006 at 04:56:00 PM EST
[ Parent ]

Re: Pulling Keynes' teeth (none / 0)

The point was to encourage long term ownership. BTW I did an article in french on the dividend ex date arbitrage

by Laurent GUERBY on Mon Sep 11th, 2006 at 02:53:15 AM EST
[ Parent ]

Pulling Keynes' teeth | 26 comments (26 topical, 0 editorial, 0 hidden)

Top Diaries

What's Next, After the Slam?

Shock Election Loss Rutte IV In Senate Race

Honduras Establishes Close Ties with China

A Return to Normalcy?

A Grand Slam for Ireland?

NI Protocol: It's all over bar the shouting?

Chinese peace principles for the war in Ukraine

The Windsor Framework

Recent Diaries

Neo-Nazi Marches Across Europe

Fascism Unites America, Israel and EU Neo-Nazis

What's Next, After the Slam?

Settler Extremism Blessed by Jerusalem Leaders

US Interference In Lebanon-Syria-Ira
q

City Agriculture - March 17, 2023

Shock Election Loss Rutte IV In Senate Race

Stalemate Endures, Pessimism Grows, Deaths Mount

Honduras Establishes Close Ties with China

A Grand Slam for Ireland?

Living In Spain and Social-Democracy

USA Censorship Act to Kill Disinformation

Flying Fortresses and Nuclear Threat

Universal Criticism Asylum Threshold EU Fortress

China Trade and Relations

SBU As a Terror Network

A Return to Normalcy?

Georgia and Foreign Agents or Spy Law

Nord Stream Blasts Timeline of Denial

Crimea As Endgame Before Going M.A.D.

Occasional Series