12-26-2021, 05:15 AM
(12-25-2021, 07:37 PM)fenders53 Wrote:(12-25-2021, 07:16 PM)Kerim Wrote: Hmm. I bet they could work out some special bonus dividend for long-held shares, but the way you've proposed it, the company would never know its quarterly dividend burden.
If we aren't holding paper certificates the company has no accurate info on who has held shares for decades. I even lose my cost basis info if I transfer long held shares. Sounds good but it just isn't happening under current system. It would be expensive drama. If you held shares long-term your YOC is low and that is your incentive.
Yup. I don't "own" my shares - Fidelity does. I know you can change that. It's not something I've ever worried about so I've never explored it. Another option would be a company offering a special as a "holding bonus" every so often based on length of ownership.
Problem is, how does this (or the original idea) benefit the company? I don't see a benefit to a company to reduce the frequency with which shares are traded. Maybe someone can point it out to me but as the market mostly goes up it would seem that high ADV would be good, not bad, for a company overall. Higher trading volume would certainly be a positive for execs and BOD members paid in stock options. And it seems as if it would be good for shareholders who are interested in capital gains.