Shares

Question 1

Sharepooling

Answer 1

2000 shares x 1.20 Oct 14=£2400

4000 shares x 1.70July 17=£6800

6000 shares /£9200 (above) =£1.53 per share

Selling 3000 shares now at £2.50 =£7,500

Selling 3000 shares before at £1.53 =£4590
/
= £2910 gain

Question 2

Bed to isa co shares

Answer 2

1. Assign £20,000 to grace on no loss no gain basis as they are married and live together
2. certificated paper versions mean have to sell before can invest electronically. Lose voting rights, company reports and co perks. Paper more expensive. Nominee cheaper, faster, held in name of co and stockbroker pays your divis’s .
3. Sharepooling used if Simon purchased shares at different times to calculate loss or gain
4. Cash to invested in ISA in either same shares or new assets based on ATR/preferences. Will be held in electronic form.

Question 3

Process to xfer certified shares

Nominee are electronic quicker to transfer and buy and sell and cheaper but less perks, voting rights, no co reports

Answer 3

Process of assigning/xferring certified shares

-Seller request and signs stock xfer form
-Buyer where required signs stock xfer form
-Stock xfer form sent to company for stamping and stamp duty paid
-Co receives form and directors decide if to approve
-co updates statutory register&
Issues new certificates
-confirmation statement issued by co house