Jump to content
  • 0

Store Capital Random Transactions

Question

I have about a dozen random transactions on my account referencing Store Capital. Funds are debited that look like old dividend payments being reversed then about 4 or 5 days later funds are credited to my account referencing a Store Capital dividend but the amount credited back is always less than what was debited. Why is this? And who is holding the difference in amount?

I contacted Store Capital and they advised they have made absolutely no change/reclassification to any dividends.

 

Share this post


Link to post

1 answer to this question

Recommended Posts

  • 0

Hey. 

This stock has gone through an income reclassification process which the underlying company has initiated. Income reclassification refers to changes companies make to all or part of previously reported dividend income to some other tax classification. The process is as follows: 

  • A dividend is a distribution of a company’s earnings and profits.
  • A distribution by a corporation is taxed as a dividend to the extent of the corporations' earnings and profits, and any distribution in excess of the earnings and profits is generally a non-taxable return of capital.
  • In some cases, a company may have paid out more in distributions than it earned during the year.
  • In this situation, all or part of the distribution may be reclassified from a taxable dividend to a return of capital which is generally non-taxable.
  • A dividend may also be reclassified in other ways (i.e. the reallocation of ordinary dividends to tax-qualified dividends or dividends to capital gain distribution (for mutual funds)

This means the dividend adjustment have had to be CONTRA'd (reversed) and reissued under the companies newly classified valued.

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Member Statistics

    • Total Topics
      13,065
    • Total Posts
      66,531
    • Total Members
      88,749
    Newest Member
    dala123
    Joined 23/11/20 16:06
  • Posts

    • Good article (new) on strategy planning and testing from Steve Burns. https://www.newtraderu.com/2020/10/25/how-to-create-backtest-and-optimize-a-trading-strategy/ "A trading strategy is the process used to enter and exit positions in a market based on quantified signals on when to buy and sell. A trading strategy will have trading plan to express a methodology that defines a trader’s return goals, risk tolerance, and time frame. A successful strategy should have an edge expressed in how trades are entered and managed to maximize gains and minimize losses."
    • (not the cost of Covid-19 but the cost of the govt's disastrous response to a virus that's no more deadly than the common flu) The REAL cost of Covid-19: RUTH SUNDERLAND's terrifying dossier exploring the full economic damage will make you ask... can we afford to keep the brakes on Britain? National debt more than £2 trillion, equivalent of year’s output by entire country  Borrowing from April to October was £170 billion higher than period in 2019  Bank of England believes unemployment rate will to peak at around 7.75 per cent https://www.dailymail.co.uk/news/article-8975765/The-true-cost-Covid-19-Read-RUTH-SUNDERLANDs-terrifying-dossier-economic-damage.html?ito=amp_twitter_share-top
    • Dax and Dow M15;
×
×