City investing company liquidating trust stock

Companies in liquidation are the antithesis of the type of investment they want to make.Even some risk arbitrageurs (who have been known to buy just about anything) avoid investing in liquidations, believing the process to be too uncertain or too protracted.As shown in Table 2, City Investing Liquidating Trust was a hodgepodge of assets.Few investors had the inclination or stamina to evaluate these assets or the willingness to own them for the duration of liquidation likely to take several years.For example, mutual fund and UIT shares are "redeemable" (meaning that when investors want to sell their shares, they sell them back to the fund or trust, or to a broker acting for the fund or trust, at their approximate net asset value).

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Quotes were unobtainable either online or in most newspapers.Generally, an "investment company" is a company (corporation, business trust, partnership, or limited liability company) that issues securities and is primarily engaged in the business of investing in securities.An investment company invests the money it receives from investors on a collective basis, and each investor shares in the profits and losses in proportion to the investor's interest in the investment company.Indeed, investing in liquidations is sometimes despairingly referred to as cigar-butt investing, whereby an investor picks up someone else’s discard with a few puffs left on it and smokes it.Needless to say, because other investors disparage and avoid them, corporate liquidations may be particularly attractive opportunities for value investors.Efforts to sell Home Insurance failed, and it was instead spun off to City Investing shareholders.

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