S corporations generally make non-dividend distributions, which are tax-free, provided the distribution does not exceed the shareholder’s stock basis. If the distribution exceeds the shareholder’s stock basis, the excess amount is taxable as a long-term capital gain. Why are distributions not taxed? This means that the shareholder’s original investment isRead More →

1 Answer. Memorylessness is a property of the following form: Pr(X>m+n∣X>m)=Pr(X>n) . This property holds for X1= time to the next event in a Poisson process , but it doesn’t hold for Xk= time to thekthevent in a Poisson process when k>1. Is Poisson distribution stochastic? A Poisson process isRead More →

The exponential distribution with non-negative real numbers. The geometric distribution with non-negative integers. Is Poisson distribution memoryless? On the other hand, a Poisson process is a memoryless stochastic point process; that an event has just occurred or that an event hasn’t occurred in a long time give us no clueRead More →