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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Diamondcutter who wrote (11830)	7/8/1998 2:17:00 PM
From: braveman	Respond to of 27307

The equity collar programs are designed to give the investor the benefits of "shorting against the box" within the rules laid out by the IRS. Prior to the IRS campaign to eliminate "shorting against the box", the investor could defer taxes and receive most of the cash value of his stock by shorting a matching number of shares. The IRS has eliminated this. The IRS did not eliminate the use of put options to lock in the value of your equity. An investor can do this at any time and not trigger any taxes. An investor could also take out a margin loan on this position at any time and not trigger taxes. The problem with purchasing put options on Yahoo is that they are very expensive. The attractiveness of the equity collar program is that the cost to the investor is significantly less than the cost of purchasing put options. Sorry about not responding yesterday buy they limit trial members to a couple of responses per day.