Member buyout?
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Member buyout? Our club has a memeber that is withdrawing. Another member is interested in buying out his units. Is it possible to do this, or do units get divided proportionatly among all members? This will be a cash transaction and no stock will be involved. I tried a test scenario in the demo club, but was not able to complete it there, so could not tell if this would work. Thanks for your help. Greg Greg Kwick writes: > Our club has a memeber that is withdrawing. Another member > is interested in buying out his units. Is it possible to do > this, or do units get divided proportionatly among all > members? The units of a withdrawing member are "retired". You should not see a change in units of the other members or the unit value (unless there is a withdrawal fee). One thing that should be clear is that a payment by another member is independent of the withdrawal. It's just like when you buy 100 shares of a mutual fund at the same time as someone else sells 100 shares. The two transactions are unrelated. They occur at the same price if they are transacted on the same day. Cheers, Rob |
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