Quote Originally Posted by Supra View Post
Goodrich aerospace industries, look them up. I invite you to come out to Spokane washington and watch my drift my fully built Sr20det 240sx, hell ill even send you admission tickets free of charge. As for my pension plan, if your smart enough to google Goodrich you might find the details about it. Applied to how much I'm making with said amount being put in, and considering my age, over time it will be a great retirement fund. Granted it takes many years to build that up. Plus the stocks I own with Goodrich, about (150) I bought them for roughly $55 a share. So I spent close to 10,000 which was most of my college fund, which was fine since I have a scholarship through Goodrich. My shares are right around 127.00 if your smart enough to search that on the stocks. So this company is also in the middle of a merger, and when that happens they are also buying everyone's stocks for about 10% extra, that number isn't exact keep in mind. So if we take my 150 shares, and multiply them by 127.00 you get about $19000. Now take that and add 10% and you should get a number pretty close to $21000, but keep in mind I already spent 8250, so 21000-8250, Sao I made almost 13000 playing in the stocks. Please tell me how I'm not smart. What are my taxes oh so amazing accountant.
First off. You're =/= Your. Laughed too hard. Second of all, I'm glad to see you made a wise-investment. However, this is not "playing stocks". You made a one time investment thinking goodrich would go up, if this is the case, and turned out to be right. If you had known that the merger would cause the stocks would go up, I'll happily report you to the SEC right now for insider trading and 10+ years in jail time. I'm glad that you've made that investment, but making a bet on a company you yourself are loyal to is easy, and by no means "smart investing". You invested in who you work for, which in itself, is a sign of good faith to your company which I respect (assuming this is true of course). Don't misconstrue this as the same thing as "playing stocks" and making money off a market that the smartest economists often can not predict.

Now if you really want me to belittle your accomplishments through an accountant's point of view, sure. Here I go!

To begin with, the 13000 you made is subject to Capital gains tax. Capital gains tax is an instant 15% reduction for short term investments, which, let's assume this is. This already drops the money down 2,950$. Now let's measure the yearly average of stock increases, which is 10%. That means that if you have a balanced portfolio, even a monkey can make 10% returns yearly on the stock market. That takes another 10% away your so called achievement reducing the Real gross profit gain of yours by 25% already dropping down your earnings over average to 9750.

Another way to look at it is the fact that if you already sold your stocks, your a blithering idiot. The reason being is that due to the merger, your company is buying back stocks at a premium. This is for two reasons, this is because anyone with shares from either company will now own shares of one company. However this companies effective Net capital will still be the same as if the two companies were seperate, more even due to an increase in Purchasing power. This means that the amount of common stock shares will decrease from the market, and inversely, owners of common stock holders will recognize an eventual increase in the stock price if they wait out a year or two, as demand for the shares will stay the same while supply decreases. Any fool who knows S & D curves (first concept) would realize that means the prices will gradually raise. So yes, congratulations on your net gain of 9000$, and your future net loss of 10's of thousands of dollars due to future stock splits as well as increases in stock price. I hope that 9,000$ gets you a very nice piping hot piece of shit that isn't even enough to pay a full years college tuition.