exchange fund

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Exchange fund

Investment vehicle introduced in 1999 that appeals to wealthy investors with large holdings in a single stock who want to diversify without paying capital gains taxes. These funds allow investors to exchange their stock for shares in a diversified portfolio of stocks in a tax-free transaction.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Exchange Fund

An investment vehicle allowing investors with large holdings in a single stock to exchange them for a diversified portfolio. This allows the investors to diversify their holdings without selling any stocks, thereby avoiding taxes on their capital gains until the shares are actually sold. Exchange funds are controversial as investors could avoid taxes completely by never selling the portfolio and simply borrowing against it. They were originally introduced in 1999. An exchange fund is also called a swap fund.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

exchange fund

An open-end investment company that swaps its own shares for an equal value of securities owned by an individual investor. Although the exchange is tax-free, the fund assumes the stockholder's basis on the securities it obtains. Thus, exchange funds ordinarily have large potential capital gains liabilities. Because of a 1967 Internal Revenue Service ruling, shares of these funds are no longer offered.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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A majority of like-kind exchange transactions require a qualified intermediary to establish accounts to hold the exchange funds until the transaction is complete.
At their option, the ADs can also lend to some extent from their own foreign exchange funds for input procurements.
Because it's a digital transaction, it is encrypted, so only the buyer and seller can exchange funds. Once exchanged, the payment cannot be altered or canceled.
The creation of the plant will fully cover the domestic demand for metal structures in Uzbekistan and will save $ 20 million in foreign exchange funds every year.
In this role, he was responsible for investment solutions tailored for the Private Client segment; including, Structured Notes, OTC Derivatives, Foreign Exchange, Equity Option Overlay, Exchange Funds, Securities Lending, and Social Impact Investments.
The bank attributed the decline to the country's need to use foreign exchange funds at the beginning of each year to provide the necessary stocks of energy, food and industrial raw materials, in addition to servicing foreign debt.
Highwoods used 1031 exchange funds held in escrow from dispositions closed in 2017 to acquire the two parcels, which are currently zoned and entitled for an aggregate of 1.2M square feet of future office development.
mybitwallet users are able to exchange funds with just 2 simple steps:
Exchange funds with reputable and recognized exchangers only.
Fidelity bonds cover the exchangor if exchange funds are lost due to theft, fraud, or embezzlement.
Exchange funds appear to be primarily used for diversification and are associated with higher personal tax rates.