The NAV is transformed into cash without requiring any action from the investor; we refer to this process as the self-liquidation property of private equity portfolios.The purpose of this paper is to have a closer look at this characteristic.Private equity is an illiquid asset class; investors cannot sell their funds when they want to without potentially facing high losses.However, unlike other illiquid asset classes, private equity is a distributing asset - a cash-flow based asset class that generates liquidity when the underlying investments are sold.If this is a long put exercise and you do not have an existing long stock position in your account, the short position delivered upon exercise will be closed out as cash accounts cannot maintain a short stock position If this is a long call exercise (not offset by the simultaneous assignment of a short call which is part of a spread) and your account does not maintain sufficient settled cash to cover the cost of the stock plus commissions, a forced liquidation will take place typically upon the market open of the next business day.Again, this is due to the fact that a cash account may not hold a negative cash balances in any currency.Which the same being the case, I invite all to come forward and liquidate.
To Africa this country owes a debt larger than she is able to liquidate.liquidate c.1575, "to reduce to order, to set out clearly" (of accounts), from L. The meaning "wipe out, kill" is from 1924, possibly from Rus. Where did you obtain the money that you applied to liquidate, or partially to liquidate, your debts? of liquidare "to melt, make liquid or clear, clarify," from L. Sense of "clear away" (a debt) first recorded 1755.The value of marketable securities, such as stock investments that are traded on a public stock exchange, and decreases to your share of the partnership's debt are both treated as cash distributions.When the total amount of cash distributed is more than a partner's basis in her partnership interest, the difference in the two amounts is a gain.
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If the partnership distributes property -- anything other than cash and property treated as cash -- during its liquidation, it has no immediate tax effect.