Definition:
Return of Capital
A return from an investment that is not considered income. The return of capital is when
some or all of the money an investor has in an investment
is paid back to him or her, thus decreasing the value of the investment. This is not a gain of any type because it is not in excess of the original investment.
Notes:
You are not taxed on this return until it begins to exceed your original investment value.
Every definition I can find speaks of a cash return.
It makes more sense to me that the dividend will not be the Debuts shares, but a cash dividend. Of what good to you would non-trading shares be. Where KWG will come up with that kind of money though, is beyond me. 27 million shares @ .20 is $5.4 million.
This is just my own thoughts people. I haven't talked to an accountant or investment adviser (though that would probably be a good idea... if I had one). Does anybody out there have a contact that could explain what we really have here?
