RE:RE:RE:RE:RE:RE:RE:RE:Glencores 1Bln shares buybackIn the U.S., long-term gains get favorable tax treatment (20%). Investments held less than one year are taxed at ordinary rates (as much as 39%). The long-term tax advantage can be as much as 20% of your profit.
If you've held a stock for 350 days and a buyout happens, you lose the long-term benefit you would get were you able to hold the stock for another 15 days. In a buyout, shareholders lose their choice as to when to sell. That's why there's often a premium offered to shareholders.
All I'm saying is that the premium needs to offset the tax benefit lost for short-term holders.
Krama wrote
I'm not sure why you think there are more tax consequences associated with buyouts as compared to simply selling the shares. As far as I'm aware, the tax rate is the same, since a buyout is essentially just you selling your shares to the company instead of to another individual.