In 1952 a number of open-end funds that specialized in Canadian securities were organized for distribution to investors in the United States. What are the various tax advantages that these firms can offer?

1. Since no dividends are paid, so long as a United States citizen retains his shares no United States tax liability is incurred.

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Investment firms must cater to their shareholders if they wish to be successful. Of course, the primary goals of investment firms are the investment objectives stated in their charters: capital gains, income, capital stability, or any one of various combinations thereof. Among the services and conveniences extended by investment firms in addition to accumulation plans that include:

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In Electronics, Size Does Matter
The eletronics market has been a popular investment area for decades. With its constantly changing marketplace and the continual advance of products, it’s not one for the weak of heart. Take a read through this historical article from the 1960s and gain some perspective on this continually ‘shrinking’ industry.

A few investment firms were organized in the United States before World War I. The amount of new capital raised by investment firms in 1929 was about $1.5 billion. 3. Investment firms issued securities containing inequitable or discriminatory provisions or failed to protect the rights of security holders.

4. Control of investment firms was unduly concentrated through pyramiding or inequitable methods of control or control was inequitably distributed, or investment firms were managed by irresponsible persons.

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Finding Your Diamond In The Rough
Over-the-counter stocks first came into favor in the latter part of the last century. This article from the the 70s has some interesting information that is still timely today.

According to the National Association of Investment Companies, at the end of 1960 there were approximately 2.9 million shareholders in investment companies. A significant part of the study covers the investment firm features which investors preferred. Half of the investors who replied to the questionnaire cited diversification as the primary advantage of owning investment firm shares.

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MetaStock Software Training Videos
With 7+ years experience coaching clients on how to get the most out of the Metastock software you’d imagine Stuart McPhee has a few things he might be able to show you on how to use Metastock. Watch Stuart’s free MetaStock software training videos here.

Up to that time all investment firms other than open-end firms were subject to normal income taxes and surtaxes. Net realized profits also were taxable. First, the investment company paid taxes on 15 percent of its dividend income, 85 percent of dividend income being exempt as in the case of all other corporations.

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Getting Into Solid Investment Values
Over a long period of time, solid investment values remain the most durable criteria in the selection of equities. This article from the 1960s offers an historical look back at the market.

One difference between investment firms and other forms of savings is noteworthy. Common stock holdings predominate in the case of investment firms. Accordingly, changes in the dollar value of their assets do not necessarily correspond to changes in new funds contributed by shareholders.

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