Unfortunately, due to lack of member interest, we are
dissolving our club. Each member has a personal brokerage
account to which we want to transfer their share of the
portfolio. The question is how do we determine number of
shares of each stock should be transferred into each members
account?

Rip:

Thanks for your reply. Some questions though . . .

The reason for choosing to transfer stock versus selling was
so that we did not lose on the stocks that were selling for
less than cost basis right now. What is the reason for
selling the losers?

My original question, which I probably did not explain very
well, was how do we determine the number of shares each
member should receive for each stock in the portfolio?
Would this be a matter of running a withdrawal report for
each member?

Thanks,
Debbie

Rip West wrote:
> You seem to have made the decision to transfer shares of
> stock, rather than selling your portfolio and distributing the money. That's
> fine, and it will postpone some of the gain on appreciated stocks. You should
> sell any losers, though, before  proceding with the dissolution.
>
>  
> Also, you will save some money if your have your members
> open an account with the club's broker. Otherwise, your broker might very well
> charge a fee for transferring securities to other brokers.
>  
> Your broker probably won't transfer fractional shares, so
> you will have to give some members more of some security than others. For
> instance, if you have six members, you won't be able to give each member a1/6th
> of each security. You should divide the securities up as evenly as possible, and
> then, perhaps, have member draw lots to see which share they take. Conversely,
> some clubs ask the members which securities they prefer. After giving weight to
> those preferences, the remaining shares are split. If you effect the transfer
> immediately after you make your valuation, you shouldn't have a lot of argument
> about the allocation.
>
> Rip West
> Saint Paul,
> MN