club_cafe: additional shares in a club

iras1 on

The club has three choices: pay you with cash that it has on hand (or collects from the other members), sell some stock to pay you with cash (recommended only if it has stocks which are worth less than the cost basis), or transfer stocks worth the value of your units to you (recommended if the club has stocks which are worth more than their cost basis). In the last option, you will be responsible for selling the stock you receive if you need the cash immediately.

There are advantages and disadvantages to both. There is a good write up on this by Jerry Dressel in the trez_talk area here on bivio.

Ira Smilovitz

In a message dated 1/20/2005 1:13:59 P.M. Eastern Standard Time, joanmeir@bivio.com writes:

My club is new to Bivio. Here is the situation I would like
guidance with. Let's say that as a club member I contribute
$150 per quarter. Now for the next two years, I contribute
$200 per quarter. After the two year period, I need cash and
I sell half the units that I own. Does that mean the club
would have to sell stock to get the money to pay me or do I
just share the units that I want to raise the cash?

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