nancy Posted March 13, 2001 Posted March 13, 2001 I have a profit sharing plan that is in the process of terminating. The plan holds warrants that do not expire until April, 2002. All assets have been distributed except for these warrants. Any ideas on what to do about this asset or are we just stuck until the expiration date comes up?
david rigby Posted March 24, 2001 Posted March 24, 2001 Pardon my ignorance, but what do you mean by "warrants?" I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
nancy Posted March 25, 2001 Author Posted March 25, 2001 It is a derivate instrument that has a value that is derived from the underlying security (i.e. common stock). It's like a call option but with a longer expiration period.
david rigby Posted March 26, 2001 Posted March 26, 2001 Does it have a market value? Usually a plan termination requires that all assets be converted to cash and then distributed (of course possible exception for ESOPs). No matter how "exotic" the asset, it should have a value, meaning the trustee should be able to find a buyer. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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