I hate to rain on people's parades, but unfortunately there's quite a number of problems with this.
First and foremost:
Who are you?You're profile indicates that you are a 220 year old New Yorker who signed up to BitcoinTalk 5 days ago and uses an anonymous email. You did some quick posts to get out of the Newbie section and then jumped straight to Securities.
To gather investors, I've found it's best to be transparent...
1) Who are you?
2) How old are you?
4) Where do you live?
5) Where did you go to school?
6) What did you study?
7) If you're currently employed, what do you do?
8') Have you ever invested before?
9) What brokerage(s) do you currently use?
10) What brought you to Bitcoins?
FeasibilityI purchase 4 shares for 1.0 BTC. That BTC goes through your account, through Mt. Gox, to your bank account, to your brokerage, and into stocks that pay dividends. Those quarterly (or annual) dividends go back into your brokerage account, you pay our taxes, the remainder goes into your bank account, then to Mt. Gox, then back to BTC, then to us again..minus all the fees of course.
Does this sound about correct?
Let's ignore the extreme trust issues you're going to encounter when convincing people about money going into your own personal account..and instead let's focus on the investing aspect.
1) What do you plan on investing in?
2) How do you plan on getting a 10% dividend return per year, especially with only a market cap of $10,000? Describe to us your portfolio and your risk management strategy.
3) How long do you plan on keeping the same stocks in the portfolio? Dividends on short term investments are taxed as ordinary income on federal and state levels. Qualified long term dividend investments, on the other hand, are taxed as capital gains. In some circumstances, if you're ordinary tax bracket is 10-15% then you pay 0% taxes on dividends.
4) As I see you've already noted, reinvesting dividends is an "all or nothing" sort of thing. Based on how you've described your plan so far, the idea
should be to
not reinvest and instead provide
your investors with a profit.
5) What about stock price fluctuations? For any gains, do we (as investors in you) see a profit from that as well?
6) How do you plan to mitigate any losses?
7) How are you going to compensate for BTC/USD price fluctuations?
8') Have you been granted your Series 7 and 63 licenses through FINRA and/or are you a practicing CFA or CFP?
9) Do you currently own or work for a SEC regulated organization?
All these questions are really
just the tip of the iceberg here.
Aside from the questionable legality pending answers to all the above questions, there's still an insane amount of risk here, which does not seem to be worth the reward of "10%". I'm not trying to harsh or anything, but I like to know what (and who) I'm investing in before I actually put my money somewhere...and I trust others do as well.
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