[t0suj4]

Isn't there a tax policy where investors have to pay a tax when they sell shares? Therefore incentivizing them to keep investing in companies promising long-term stable growth (aka Amazon) over other companies with various growth strategies?

[xyzelement]

Can you elaborate the connection - what do you mean by "therefore incentivizing?"

[t0suj4]

In other words, your stock investment better be worth it or get taxed if you change your mind. This tax policy introduces positive feedback loop that makes big companies like Amazon bigger. Not sure how profound this component is, people trade stocks all the time.

[edgyquant]

I think they described the incentive perfectly. We tax short term investments higher than longer term ones to incentivize the holding of them longer.