Holland oil liquidating trust Carribean sex live chat
To many the words “liquidating trust” connote bankruptcy, but that need not always be the case.In fact, a liquidating trust can be a cost effective, simplified structure to wind down a solvent company and realize some value for stockholders.
Trusts have declined precipitously in both popularity and price over the last few years. Tax-loss selling has exacerbated the price declines.
For companies with certain types of illiquid but valuable intellectual property, the liquidating trust’s simplicity and lower cost can make it superior to other alternatives.
For example, for a small biotech with drug development programs out licensed to third parties, the liquidating trust can be a cost effective way to collect milestones and royalties for a period of time while open issues are resolved and a transaction can be closed to monetize the licensor interest.
Stockholders in the company become unit holders a/k/a beneficiaries of the trust.
The trust units are not tradable but shares of stock in a company that has dissolved are typically are no longer tradable either.
This is certainly a good way to limit your losses, but my experience with it usually has me selling right at the bottom of a dip, only to see the stock pop right back up after I'm no longer in it to enjoy the bounce. My philosophy is generally to get very comfortable with a company or investment before dedicating money to it.