Replies to post #8995 on Avalon Technology Grp (fka AVLN)

[Mark_Leh]

It is unclear what form the dividend will be in. It could be regular stock--a traditional spin-off--or it could be restricted stock. If it's restricted stock, the sale of the dividend stock--not the IDWD stock--will be governed by Rule 144.

To summarize, you will get the dividend on the ex-date; you will not have to have held the IDWD stock for a year to get it. However, depending on the form of the dividend, you may have to wait a year or two or a little more to sell the dividend stock.

There are tax implications to the dividend which have never been clarified. My recollection is that there was a reference in a PR to the effect that the dividend itself would not be a taxable event. This is true. However, the dividend has a potentially huge effect on the underlying basis of your IDWD stock and what taxes you will have to pay on that.