Freeport-McMoRan (FCX)

[eddy2]

We will be discussing two topics today. The first topic will be the statement what is hers is hers and what is mine is hers. I’m not taking the marriage of two human entities but the marriage of two corporate entities and there owner members.

Corporate tax has to be accounted for. To take money from a corporation the tax has to be paid. This responsibility lands on the company and its members. Let’s look at the company it self. If it borrows money that money has to be returned after tax’s are paid. If dividends are paid out in the form of cash or stock the tax responsibility falls back on the member and there partners ie: bank.

So one can see that there is a credit established yet no money has exchanged hands between a goverment institution and her lady self “ the corporation”

The credit is it’s members contribution when the tax’s come forth. Keeping the funds under the partnership arrangement defers the tax holding the liability too her member and the credit to the lady.

Credit is goodwill and goodwill can be sold.

Now you may ask how is this so that yes I received thousands if not yet millions in shares and that the value less then what I invested giving me a tax credit not a bill.

Those are the market forces at work. If you should try too remove the certs you will be asked too pay a processing fee for your 50% stake in the partnership. Remember you can’t send the certs back after the tax’s are paid and the credit is removed from the balance sheet.

Another thing that takes place often is that the company will pay the tax and issue the certs. This is done through a warrent offering. The thing is your partner under the banking act is not required directly but indirectly in telling you this by the valued assigned to the particular share in question.

Over time there is a administration fee applied by your partner diminishing the assets value as a whole.

It’s all there in the fine print when the partner ship was initially set up.

Now you can in a Dutch auction have your partner buy you out of your interest minus his administration fees. You could have the debt renegotiated using a very sharp corporate lawyer. I would recommend the hiring one if you don’t hold the expertise your self. Even if you hire one to go through the discovery process to see if there is a case of wrong doing is sometime very worth well.

This is not a plug to hire a lawyer. I’m not a lawyer and I’m not being payed to promote there service.

We are here to educate and hold no degree stating we are qualified to do so.

Do your own DD as I’m going to leave the second topic I was going too discuss until tomorrow. A heads up to that topic is a topic we touched on and that is equity revenue and its use towards releasing the value in depreciated assets that sets the requirement that all members pay there share of corporate tax’s besides the corporate tax’s on borrowed funds.

This will bring up other interest you may not of considered in the past.