Equities Trade “DIRTY” – What that Means and Why it Matters

Overview: The purpose of this whitepaper is to educate readers about a flaw in our market structure, that causes income-producing securities to trade “Dirty." Dirty security pricing causes investors to pay inflated values for income-producing securities and then...

About FairShares®

FairShares is in the business of “Making a Difference” in the lives of people who use investment funds to save for their future.

FairShares is not a new type of security. Rather, FairShares’ intellectual property improves how an existing investment fund’s income and capital gains are accounted for and distributed. As a result, funds that are “Powered by FairShares” generate higher investment returns and enhanced buying power for their shareholders. Additionally, FairShares increases the assets under management within a fund by allowing 100% of a shareholder’s invested capital to remain in the fund post-investment. This outcome is possible by eliminating certain antiquated structural risks and tax inefficiencies that cause investors to pay taxes they should not owe and diminish shareholder buying power.   

The risk FairShares patent portfolio solves is called “buying a dividend” or “buying a capital gain,” and it causes equities, such as mutual funds and ETF’s to trade Dirty. Similar to the pricing found in bond markets, investment funds trade Dirty when the dividends and capital gains the fund has generated are added to the price an investor pays for an investment fund. Buying a dividend is an unintended consequence of the “last holder of record” payment system that is used to distribute dividends, interest, and capital gains to shareholders and is disclosed as a risk in every investment fund prospectus. FairShares is partnering with select technology providers, transfer agents and fund administrators to make our product available to any investment manager who is interested in Making a Difference in the lives of their shareholders by allowing their investors to keep more of what they earn and enjoy a better quality of life in retirement. FairShares revolutionizes the way we save and invest by creating fair, orderly and efficient markets.

We have spoken to Regulatory Authorities regarding our product and can provide interested parties with a memo summarizing our conversations with the SEC. FairShares systems and methods improve an existing back-office process. Therefore, FairShares is not a security.

 

FairShares Delivers More Income to Shareholders

Additional Income Earned by an Investment Fund Powered by FairShares – Over a 12 Month Period

 

Additional Income Generated

FairShares Higher Investment Returns

FairShares Delivers Higher Returns

Investors keep more of what they earn and retire with more money

Increased Annualized Yield

FairShares Daily Investment Income return

Higher Yields

Investors generate higher yields by purchasing more shares

 

More Shares Purchased

FairShares Superior Performance Investment Return

Buy More Shares

FairShares investors are able to buy more shares with the same amount of capital

Our Research and Analysis

These numbers quantify the additional income produced and additional shares purchased by the investors of an investment fund Powered by FairShares – compared with the income earned in an identical traditional fund over a 12 month period. We encourage you to read our Blogs where you will find a library of information, all of which mathematically proves the benefits and value that FairShares delivers. As a primer, we encourage readers to start with a Blog titled “Equities Trade Dirty – What that Means and Why it Matters.” If you would like to understand the assumptions behind the numbers used above, please click HERE.

Making a Difference for Investors

Which fund structure is in the “best interest” of the shareholders?

Making a Difference for Asset Managers

Clearly a superior alternative to traditional investment fund structures.

How to Get Started With FairShares

FairShares systems and methods can be licensed and used with any income-producing investment product. We are currently offering discounted pricing to investment managers who understand the importance of moving quickly to solve these problems for their shareholders.

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License FairShares Patent Portfolio - Available in 153 Countries

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Equitably Distribute Dividends and Capital Gains to ALL Investors - Not Just To The Last Holders Of Record

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Apply Generally Accepted Accounting Principles (GAAP) To Dividends And Capital Gains

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Securities Are Now "Priced Clean"

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Problem Solved - Dividends and Capital Gains Are Removed From The Prices Of Securities And Investors Make More Money

 Do You Want to Keep More of What you Earn and Make a Difference in the Lives of Others?

If So, Enter Your Email Address Below To Become A Member Of The FairShares Community and #SupportCleanPricing

We can’t do this without your help. Financial innovation is notoriously slow, even when your money is on the line. By entering your email address below, FairShares will keep you up to speed on our progress, investment product launches, news, and how you can help us create an improved financial system. By coordinating our efforts and by working together as a Community – We will Make a Difference for our generation and generations to come! #BuyFairShares

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