Big Banc Split Corp T.BNK

Alternate Symbol(s): T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.

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Big Banc Split Corp

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Comment by tinman8on Jan 28, 2011 2:06pm

248 Views

Post# 18041732

RE: RE: RE: Insider Options and Sales

For a full explanation of how stock options are treated go to the Revenue Canada site.
In brief it works like this.
Options are issued at a 'strike' price (which is supposed to reflect fair market value at time of issue)
Options are taxed in the year they are disposed off.
Tax is based on 50% of the difference between the selling price and the strike price

EG - 10,000 BNK options strike price $6.00 later sold for $8.00
= 10,000 x $8.00 (market selling price) =$16,000
Minus 10,000 x $6.00 (strike price)          -$12000

Leaves                                                          $4000 x 50% = $2,000

Seller will be taxed at their marginal tax rate (say 40%) on $2,000   = $800 tax

Cheers,
Tinman

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