club_cafe: WITHDRAWING PARTNER

iras1 on

In a message dated 4/12/2007 12:00:57 P.M. Eastern Daylight Time, garbagecop@earthlink.net writes:

Let's say you owe a departing member $384 dollars. ABC Company shares are
currently trading at $30/share. That would equate to 12.8 shares. To be
safe, I would transfer 11 shares, then wait for the confirmation so you know
the exact value of that transfer. (Firstrade does not charge transfer fees;
some do). After the transfer, you would owe a small cash balance of $54.
That amount won't change, whether you write it today, or wait until you have
the cash funds from the meeting.

This is wrong. The value of the stock for the purposes of a withdrawal is the value on the valuation statement. You don't have to wait for a confirmation to determine the cash balance left to pay out.

Ira Smilovitz

See what's free at AOL.com.

Lynn Ostrem on

Hi Ira,

Yes, I see what you are saying. I'm thinking of those times when I sell stock. When transferring, the withdrawal function will pick up the correct value because you give it that valuation date. Duh! Thanks for correcting me.

Lynn

Mail