[Delray Beach, FL] FairShares, an innovative fintech and intellectual property company based in Delray Beach, Florida, has launched Part 1 of a 2-Part Investor Protection Initiative aimed at addressing a long-standing issue in the stock market known by industry insiders as "buying a dividend." This problem has been costing investors hundreds of billions of dollars in losses for decades, resulting in the over-taxation of investment income and artificially inflating the prices of the income-producing securities purchased.[1] FairShares' Investor Protection Initiative aims to provide investors with the much-needed transparency and disclosure they deserve, protect them from ongoing tax losses caused by the backward accounting treatment of dividends and capital gains, and amend their previously filed tax returns to recoup losses and make them whole.
Jeremy Roseberry, FairShares' CEO, recently met with a Commissioner of a US Securities Regulator to discuss the lack of awareness around the significant risk posed to investors by the accounting treatment of dividends and capital gains. As a result, the Regulator tasked FairShares with studying current risk disclaimers and found several deficiencies. The study's conclusions, submitted to senior Regulatory officials in September 2022, highlighted potentially misleading disclaimers often located in the back of investment fund prospectuses, many of which suggest the risk of "buying dividends" only occurs if investors purchase shares "just before" a distribution is made. This assertion is untrue, and Regulatory Officials did not openly dispute this conclusion. Investors need to understand that this risk is present nearly all the time. Investors should consider using FairShares' DistributionRisk Analytics software to better understand the hidden tax liabilities attached to the income-producing securities they buy. Additionally, many of the reviewed disclaimers excluded crucial material risks and did little, if anything, to adequately convey the actual risks an investor assumes for a given purchase of a certain quantity of shares.
Per the Regulator's request, FairShares presented the Regulator with a comprehensive plan to 1) provide investors adequate and real-time disclosure of these risks before they invest, 2) create accurate tax forms using FairShares' product RoboTax®, 3) Amend previously filed tax returns to make investors whole and to 4) approve a better method for accounting for distributions which eliminates the risk of "buying dividends" and prices securities fairly.
FairShares' Investor Protection Initiative:
Part 1: Today, FairShares has launched DistributionRisk Analytics. DistributionRisk Analytics provides investors with free, cutting-edge software tools to estimate potential tax losses and mitigate risks before an investor makes a trade. Investors and the public can access this tool on FairShares' website or via API for financial service companies and data providers. By using DistributionRisk Analytics, investors can increase their buying power, avoid costly tax losses, and improve after-tax returns, ultimately resulting in more money in their pockets.
Part 2: FairShares is set to release RoboTax in the coming months, a revolutionary product designed to help investors protect their investment income from ongoing over-taxation. This innovative software can also assist investors in amending their previously filed tax returns, enabling them to recover overpayments and recoup any losses incurred. To become eligible, sign up for a free FairShares DistributionRisk Analytics account now and be the first to know when RoboTax becomes available. Limited spots are available to the public.
The company believes that investors deserve full transparency regarding their investments and is encouraging the industry to move away from generic disclaimers and instead implement customized, real-time disclosure of these risks before investors commit capital. This can be accomplished by using DistributionRisk Analytics. By providing investors with accurate and timely information about the real-time risks they face, the industry can better serve its clients and promote greater trust in the investment process.
In closing, FairShares' innovative products and patent portfolio are fixing a long-standing issue in the investment industry, which has cost investors hundreds of billions of dollars.
