casey00001

Playing the Auto Bailout With Yields as High as 45%

No, these payments do not qualify as dividends. They are interest payments to the shareholder. As such they are not subject to the 15% capital gains rule. According to the perspectus, the dividend can not be suspended. (GMS)


On Dec 10 05:37 PM joeevan wrote:

> The rescue plan notes: "As long as the loans are outstanding, the
> auto companies would be barred from paying dividends to their shareholders
> or bonuses to their top executives."
>
> Does this stipulation apply to the convertibles and related certificates
> or just dividends for common shares?
>
> Thank you.