A fine to the company just eats away a little of the profit. Maybe the dividend is lower next year.
A fine to the investor is literally taking money out of their pocket. Before they receive the dividend check. Even if it nets the same to them in the long run, it will feel different. It will be true punishment rather than reduced reward at a later date.
A fine to the investor is literally taking money out of their pocket. Before they receive the dividend check. Even if it nets the same to them in the long run, it will feel different. It will be true punishment rather than reduced reward at a later date.