Club Audit Items - ADR Fees, Cash Liquidation - club_cafe - bivio Investment Clubs

Club Audit Items - ADR Fees, Cash Liquidation

iras1 on

ADR fees are deductible expenses. Cash liquidation is probably cash-in-lieu for fractional shares in a merger, but it could be something else. Could you provide specifics about that transaction?

Ira Smilovitz

In a message dated 2/3/2012 1:58:35 P.M. Eastern Standard Time, ldelmolino@comcast.net writes:

In performing our year end club audit, I came across a
couple of items that I'm not familiar with - they are very
small amounts and I simply want to have a better
understanding of what they are. One is an expense item
labeled "ADR Fees" and the other is an income item labeled
as a "Cash Liquidation" (looks like some kind of dividend).

Thanks in advance for your help!

Len Delmolino
Treasurer, Oak Point Investment Club

Leonard J Delmolino on

Ira, thanks for your prompt response.

The Cash Liquidation is from a Brazilian company that we own
(CBD - income to us on 5/12/2011). My understanding is that
owning foreign stocks sometimes involves owning fractional
portions in the actual company stock - so maybe your comment
about fractional shares is relevant here.

The ADR fees are independent of any single stock transaction
- looks like this is just a general service charge for
buying and selling foreign stocks - does that sound right?

Len Delmolino
Treasurer, Oak Point Investment Club

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