MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for U.S. and European corporate bonds, emerging markets bonds and other types of fixed-income securities, announces the tax treatment for its 2012 dividends. MarketAxess paid an aggregate of $0.44 per share in quarterly dividends on its common stock during 2012 and a special cash dividend of $1.30 per share in December 2012. For United States federal income tax-reporting purposes, the Company reported 49% of the 2012 dividends as a distribution in excess of the Company's earnings and profits.
Distributions in excess of earnings and profits are generally treated as a return of
to the extent of a stockholder’s basis in his or her shares. Accordingly, these non-taxable distributions reduce that tax basis. Once a stockholder’s basis is reduced to zero, these distributions generally will be taxed as capital gains.
While the above information includes general statements about the tax classification of dividends paid on MarketAxess common
, these statements do not constitute tax advice. The taxation of corporate distributions can be complex, and stockholders are encouraged to consult their own tax advisers to determine what impact the above information may have on their specific tax situation.
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MarketAxess operates a leading electronic trading platform that enables fixed-income market participants to efficiently trade corporate bonds and other types of fixed-income instruments using MarketAxess’ patented trading technology. Over 1,000 investor and broker-dealer firms are active users of the MarketAxess trading platform, accessing global liquidity in U.S. high-grade corporate bonds, European bonds, high yield and emerging markets bonds, agency bonds, asset-backed and preferred securities and credit default swaps. MarketAxess also offers a number of trading-related products and services, including: market data to assist clients with trading decisions; connectivity solutions that facilitate straight-through processing; technology services to optimize trading environments; and execution services for exchange-traded fund managers and other clients.