ECN 204 Lecture Notes - Lecture 6: Lex Luger, Students Of Georgetown, Inc., Propylthiouracil
Document Summary
Reorganization of outstanding shares of a comp may include the exchange of common shares for special (preferred) shares. The automatic rollover on a capital reorg provides for a deferral of any. Accrued gain on the shares held immediately prior to the reorganization as long. As the sum of the fmv of the boot and the puc of the share consideration. Received as part of the reorganization doe n"t exceed the puc of the existing. The puc of the new shares will normally be equal to the puc of the old. You have shares in a corp, and they want to redeem your shares and give you. There i a downward adju tment to the puc of. Ur new shares so that they = the puc of your old shares so no deemed dividend triggered. = puc reduction (** pro rate the puc reduction when there is more than 1 class of shares.
