I need help in explaining this process to our club.  One of
our members incurred a fee for not contributing last month.
Because he did not pay the $10 fee in time, it was withdrawn
from his account.  In Bivio, we sold $10 from his account
and he was charged a $10 fee.  Now, they want to know what
happens to the money.  The simple answer is it's in our
brokerage account as cash available for investing or
covering expenses.  Some think it will buy each of us
fractional shares in the club.  I say no, but I don't know
how to explain what happens with the money.

It increases the value of each unit of your club by $10/# units outstanding. In other words, each member's total value increases by his percentage share of the club. This includes the member who was assessed the fine.

 

Ira Smilovitz