You’re a drone company. You drone on and on about how you make the best flying noise makers in the world. You used to sell most of your drones in hobby shops and electronics stores. But Radio Shack went under. The Hobby Shop chain floundered. They used to be your primary distribution centers, through which retail customers would buy your product
You had to move to Walmart with much lower profit margins for you, but at huge scale volume. That helped. Then you migrated to Amazon as well. And when both wanted exclusives to your hip cool drones, you realized that relying on them for your primary distribution was going to be a slog.
So you built a snazzy cool website and began etailing the drones right off of your own site, hoping that you’d then come to own your own primary distribution, know who your customers are, and be in control of your own destiny in one form or another. That was the hope, anyway.
Now you just have to pray to the gods at Google search for customers to come find you in all the noise.
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Finance: What is Capital Gains Distribut...21 Views
Finance a la shmoop what are capital gains distributions? cap gains app
hap-happy day.. your mutual fund invested a hundred grand in whatever.com it then [Mutual fund appears]
was bought by Google for three hundred grand
three years after you invested at least that was your portion that three hundred
grand well you had a gain of two hundred grand
on your investment and because Google paid cash not stock in acquiring
whatever.com on your books the gain was realized ie turned into cash so then the
mutual fund has to distribute to you that capital gains ie the cash it [Capital gains definition appears]
realized in selling the company to the kindly loving people at Google whose
motto is do only a little bit of evil right so one more time for the people in
the back how does this capital gains distribution thing work well the fund
manager looking out for your mutual fund may sell or buy some of the stocks or [Fund manager appears with stocks and bonds]
bonds in your fund if she sells and makes a profit well then that profit or
the proportionate gains part of it has to be distributed to the fund holder and
that's you and then of course you got to pay taxes
on that distribution if your fund is held in a normal account like it's in a
401k or an IRA you'll pay taxes on it later but not right away and if you own
it personally well you'll pay at that year yeah Uncle Sam always needs to get [Uncle Sam appears]
his cut when there's capital gains distribution if he doesn't he gets angry
and you know you wouldn't like Uncle Sam when he's angry [Uncle Sam turns into Hulk]
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