variable prepaid forward contract


A controversial strategy used by investors with large stock positions to generate liquidity without incurring current taxes by contracting with a brokerage firm to deliver the shares of stock at some future date In return for a cash payment equal to 90% of its current value. The deferred tax treatment, currently being challenged by the IRS, is based on the assertion that an actual transfer of shares has not yet occurred.
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variable payment plan variable price limit