Are dividends included in trading & professional profits?
Answer:
yes I believe so
In theory ,dividends are payable to the share holders when a company makes money, but in practise due to tax advantages the share holders take dividends per month or quarterly and this will reflect in Trading profit and Loss account.
Usually, but there are some exceptions.
Some hedge fund managers strip out interest and dividends and only bill on the performance of the buy and sell timing.
Dividends are more investment and less trading oriented. As they are prorated, typically quarterly, their holding periods are often too long for a lot of trading strategies that are too short-term.
No. Dividends are appropriation of profits. Net profits after taxes are presented to board and they can either declare dividends from it or can prefer to not distribute it and take it to revenue reserve in balance sheet to pay for any big future investments like Arsenal Football Club did for Emirates Stadium.
Profit after tax for company is like net salary to you(after taxes)
and yopu can either spend it or save it for rainy days.
No. For an individual dividends are taxed as unearned income, whereas trading profits or the profits of a trade are taxed seperately as earned income
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