Economic theory that predicts harmful market failures due to the information asymmetries that are present
when ordinary investors rely on advisers who are far more expert than them, but highly conflicted
Not exact matches
When the bond matures, the second
investor must include as
ordinary, taxable income ten points of gain (the revised issue price at acquisition of 70, less the purchase price of 60).
This is very rare, but
when it happens, it leaves a lot of very unhappy
investors; their coupon payments are taxed as
ordinary income and, if they choose to sell the bond, the price they receive will be reduced because buyers would require a higher yield on a taxable bond.
Ordinary investors are significantly at risk
when they short stocks.
What I mean is that
when an
investor holds XSP in a taxable account, any dividends received are treated as
ordinary income and taxed at marginal rates.
The part of the article that most caught my attention was
when this
investor said that, despite the stress, he must hang tough because, «For
ordinary Americans, the stock market is just about the only way to make money... you have to play.»