Law360, New York (August 2, 2016, 3:50 PM EDT) -- One of the things that keep certain hedge fund managers up at night is the specter of a financial transactions tax, or FTT. An FTT is a tax that is imposed on gross proceeds from certain types of financial transactions. For example, if Country X were to impose an FTT of 30 basis points (i.e., 0.3 percent) on all sales of securities executed on domestic exchanges, a fund that sold 100 shares of Stock ABC for $100 per share would be subject to a tax of $30 (i.e., $10,000 * 0.3 percent). Note that this tax would be imposed at the same rate regardless of whether the trade were a winner (for example, if the trader had purchased the stock for $90 per share), or if it were a loser (if, for example, the trader had purchased the stock for $110 per share)....
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