kenny782
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My father got this letter a few days ago.
He asked me what I thought of it and I told him I'd look into it.
I told him to ask Wells Fargo but he says had some issues and trusted me more lol
It looks like a form letter so I was hoping someone could give me a rough translation. I cut out any personal information.
Here's the letter: http://img139.imageshack.us/img139/1094/wellsfargoletter.jpg
Thanks alot,
Kenneth
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Fri Oct 15, 2010 4:29 am |
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coaster
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This gets pretty confusing, doesn't it?
As far as I can tell from my brief research, when Wachovia and Wells Fargo merged, Wachovia became Wells Fargo Investors. They are the broker-dealer for the bank of the same name. There are another two separate broker-dealers; apparently both legitimate; one with the name Wells Fargo Advisers LLC and the other Well Fargo Advisers Financial Network LLC, neither of which are associated with the bank.
It appears the letter is from #2 above. The purpose of the letter is to advise that the shares of a defunct company having no value and not having traded for a lengthy period of time renders their ability to provide account statements problematic, and they're solving their problem by removing the shares.
I guess if it were me, I'd request the courtesy bid, so as to make taking the tax loss black and white, cut and dried. If there's a 1099-B that reflects the disposition of worthless shares, then it's easier to claim that amount as a capital loss. But whether it's worth doing I suppose depends on how much they want to nick you for the service.
~Tim~
Eye Candy : Why Whimsy
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Fri Oct 15, 2010 5:00 am |
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kenny782
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Confusing is right lol
But thanks alot for the reply.
Reading the letter actually makes some sense now.
One last question
What exactly is the "courtesy bid"; especially in this case.
I mean how can anyone bid on "0" lol
Thanks,
Kenny
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Fri Oct 15, 2010 8:05 am |
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coaster
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That's exactly what it is. You can't have a market price without a bid from a buyer and an offer from a seller. The broker extends a bid of say, maybe a penny per share, and your dad is the seller, so a theoretical "market price" is established with which to liquidate the shares and claim the loss. They bid on the shares as a courtesy to establish the market price; they have no intention of actually buying the shares.
~Tim~
Eye Candy : Why Whimsy
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Sat Oct 16, 2010 1:12 am |
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