Freeport-McMoRan (FCX)

[eddy2]

Equity holders pay the profit tax that is another sales and service tax provided by the company.

What most don’t realize if the company is trading then this tax can be incorporated into the equity debt. In other words if you get a dividend there is no tax required to be paid pending the value of the equity debt.

If the company has no equity debt ie: zero trading of the shares. In this case you will have to pay the profit tax yourselfs.

The later is a pure bond play while the other is a goods and service debt payment.

They are structured very differently. One you must be represented by an institution for payment while the other requires that you don’t have too and you can actually hold the certs.

Now you will be asked to pick a representative. The majority of them like a company doesn’t charge anything for this service ie: goodwill.

I have seen investors who are debt free, lots of assets can’t find a representative. They will even try and take out debt but at no avail if a lot of there assets are held in cash. Can you imagine if you have a pile of cash coming your way with little assets in comparison that you may own outright and you can’t find a representative cause there is nothing in it for them.

Catch 22 or to for two that the situation is often referred too.