Even today, after the bursting of the stock-market bubble, American venture-capital firms—which are in the business of betting on the future—dwarf the firms from all other nations.

And if they want to spend it on compensation or stock buybacks or dividends, let them pay the long-term capital gains rate.

Moreover, the diluting effects of share capital increase on earnings will drag stock price down in the absence of a desirable expectation for earnings growth.