Our club is considering investment in NEXCF (Nextech AR
Solutions Corp) which is registered in Canada and is not
listed on US Exchanges (OTC only). Over the years I have
heard clubs and Bivio representatives caution about
investing in OTC foreign registered stocks due to tax
complications, currency risks, liquidity, and complications
in Bivio tracking. What is the current thinking? Thx, Mike
Grove, Azure Investment Club of Washington
Laurie Frederiksen on
There are several issues you'd have if you invested in NEXCF.
1. It is an over the counter stock whose price is not included in our pricing database. That means you'd need to update its price manually every time you needed an accurate valuation to do any accounting, prepare any reports or produce taxes.
2. When foreign companies go through changes such as reorganizations, special distributions and even exchange listings changes, information on the US tax consequences of those things is often difficult to come by since the company is not required to provide it.
This can lead to delays and uncertainty in getting your record keeping updated correctly.
So holding it would complicate your record keeping.
Laurie Frederiksen Invest with your friends! www.bivio.com
Our club is considering investment in NEXCF (Nextech AR
Solutions Corp) which is registered in Canada and is not
listed on US Exchanges (OTC only). Over the years I have
heard clubs and Bivio representatives caution about
investing in OTC foreign registered stocks due to tax
complications, currency risks, liquidity, and complications
in Bivio tracking. What is the current thinking? Thx, Mike
Grove, Azure Investment Club of Washington