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Generally, offers in compromise take one of two forms: 1. The taxpayer pays 20% of the total offer amount with his application, then, if the IRS accepts the offer, the taxpayer pays the rest in five or fewer payments. 2. The taxpayer makes an initial payment and then makes monthly payments while the IRS considers the offer.
Tender offers can be executed without the consent of the company's board of directors. The potential acquirer can work directly with shareholders to takeover the company. Sometimes this is referred to as a ' hostile takeover.'. A tender offer is a proposal by an investor to all current shareholders of a publicly traded corporation to tender ...
Generally, they fall into one of six of the following categories. 1. Preliminary Prospectus. Also called a “red herring prospectus” (because the document’s cover needs to have a special notice printed in red), it’s the one most companies use to attract potential investors, since it’s the first document issued.
Bank Guarantee vs. Letter of Credit. It is important to note that a bank guarantee is not the same as a letter of credit, although with both instruments the issuing bank accepts a customer's liability if the customer defaults. With a guarantee, the seller's claim goes first to the buyer, and if the buyer defaults, then the claim goes to the bank.
The offering memorandum usually includes a subscription agreement, which is the formal contract between the issuer and the investor for the purchase of the investment. In many cases, the law limits investors to those who are 'accredited,' meaning they meet minimum net worth requirements and/or other requirements as dictated by the SEC and state ...
A commercial letter of credit is one of the most common and is reflected in the example above. This kind of letter acts as the primary payment mechanism between the customer and the beneficiary; that is, the issuing bank makes the actual payments to the beneficiary every time. So in our example above, Bank of Alabama pays Company ABC directly ...
Market letters offer advice to investors interested in investing in a particular market industry or type of security. For example, certain market letters may specialize in technology stocks, bond markets, foreign exchange (forex) markets or precious metals.
A guaranteed investment contract (GIC) is an agreement between a contract purchaser and an insurance company whereby the insurance company provides a guaranteed rate of return in exchange for keeping a deposit for a fixed period of time.
A green shoe option is a clause contained in the underwriting agreement of an initial public offering (IPO). Also known as an over-allotment provision, it allows the underwriting syndicate to buy up to an additional 15% of the shares at the offering price if public demand for the shares exceeds expectations and the stock trades above its ...
401 (k) Rollover Step 1: Know Your Options. Usually after you leave a company, your old 401 (k) sponsor will send you a letter giving you three options: Leave the plan with the sponsor. Cash out the plan (the funds will be taxed as normal income and you'll be hit with the 10% early withdrawal penalty) Roll over the old plan funds into a new ...