Locked-in, Loaded, and Ready to Govern? The Influence of Capital Gains Taxes upon Mutual Fund Voting.
The realization-based capital gains tax in the United States – that is, taxes are paid on gains on assets like stocks only when they are sold – has been shown to influence investor behavior and financial markets. For example, mutual fund managers are more likely to sell stocks that have fallen than have risen, particularly those with tax-sensitive investors, consistent with tax-motivated trading. Also, the higher-than-average return of stocks in the month of January has been in part attributed to individual investors dumping losing shares in the month of December (with the subsequent price rebound when selling pressure subsides in the new tax year). Capital gains lock-in was even cited on ESPN as a reason why Donald Sterling would not want to sell the Clippers for $2 billion (because most of the $2B would be gains that would be taxed upon sale). That’s right, capital gains taxes on ESPN!
Why the Supreme Court Needs to Know Standard Error
Can you be completely sure that someone is “mentally disabled”? This is what the Supreme Court must decide for the case that was presented this past Monday March 3rd. The case involves Freddie Lee Hall of Florida who is sentenced to die for raping and killing a 21 year old woman who was seven months pregnant. In 1978, he was arrested and sentenced to death penalty.
Congratulations, Andrea Ruedi (EMBA 2013)
We’re delighted to announce that Andrea Ruedi (EMBA ’13) has taken up a position as CEO at Fox Development Corporation. This is her second stint with FDC. While previously at FDC, Andrea was instrumental in marketing the Research Park to prospective companies, successfully garnering state funding for infrastructure to allow for the Research Park’s expansion, and developing the I Hotel and Conference Center at Champaign. Prior to taking the job at FDC, Andrea served as Deputy Director of the Illinois Center for Transportation (ICT) at the University of Illinois at Urbana-Champaign, one of the world’s premier transportation research centers. In that role, Andrea was responsible for strategic planning and business development and also managed ICT’s $30 million research program.
Congratulations, Joe DiPietro (EMBA 2012)
Our heartiest congratulations to Joe DiPietro for being named as the Vice President, Parts, NA for AGCO Corporation. Joe holds a B.S. in Industrial Distribution and an Executive MBA from the University of ILLINOIS. He was most recently Director, Supply Chain within the parts division in North America.
We’re so proud of Joe’s accomplishments. Please join us in congratulating Joe on his promotion and best wishes for continued successes in the future.
Google’s Latest (Uber) Investment
Uber, the technology start-up, reports that it has raised $258 M in financing from a variety of investors including Google Ventures. Uber’s software allows anyone to request a taxi ride from drivers who turn their downtime into a money-making opportunity. Uber started off as a convenient limo service but has now morphed into a ride sharing company through its UberX service. Uber’s ride (no pun intended) has not been smooth so far and it has engendered hostile responses from taxi cab services and local regulators. Some of these expressed concerns including safety and liability issues need to be sorted out.