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...
Following a series of meetings with staff representing various Divisions of the SEC, the principals of FairShares had a video conference with SEC Commissioner Lee on September 8, 2020.
FairShares spoke with Commissioner Lee about how the current accounting treatment of dividends and capital gains adversely impacts investor returns and buying power. We explained how investors of income-producing securities (i.e. investment funds and individual equities) are required to pay inflated asset values and then pay taxes on income they never earned.
FairShares also reviewed the mechanics of FairShares’ intellectual property, which corrects this problem by preventing investor losses and properly valuing income-producing securities.
FairShares is grateful to Commissioner Lee for her time spent listening to FairShares’ explanation of an issue adversely impacting all investors and how FairShares intends to fix the problem. Fixing this problem is necessary to create fair, orderly, and efficient markets.