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Strategies & Market Trends : AIM Questions and Answers

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To: Philip Ng who wrote (135)12/18/2000 12:20:57 PM
From: OldAIMGuy  Read Replies (3) of 221
 
Hi Phil,
The adjustments you mention are "NON-AIM" events. They are handled differently than our regular AIM events of buying and selling on AIM's advice.

If you have an account with 1000 shares in it and need the value of 500 shares worth, you would sell the 500 shares and reduce the Portfolio Control by the value received. All else remains the same. You are restarting the account at a lower point. Your buy/sell range will expand a bit unless you also were to reduce the sizes of your minimum trades by the same proportion.

When your great aunt Nellie sends you your holiday gift and you decide to add it to an existing account, you do pretty much the reverse of the above example. You have 1000 shares of an equity and add 500 shares worth to it. You add the entire value of that 500 shares to Portfolio Control. Not half. Since this is a non AIM event, this is the alternate rule.

If you are making withdrawals from the CASH side of an AIM account there need be no change to the internals.

Best regards, Tom
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