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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: OTC is MOST confusing:
1)Open Text Corporation (NASDAQ:OTEX) announced that its board has approved a 2-for-1 share split of the outstanding common shares of OpenText . The share split will be implemented by way of a share dividend.
PAYABLE Jan. 24; for shareholders of RECORD Jan. 9.

2) The detailed blurb then says:A due bill is an entitlement attached to listed securities undergoing a material corporation action, such as the Share Split. In this instance, anyone purchasing a Common Share during the period commencing at the opening of business two trading days prior to the Record Date (i.e., Thursday, January 5, 2017) and ending on the Payment Date (i.e., Tuesday, January 24, 2017), inclusive (the "due bill period"), will receive a payable right. Any trades that are executed during the due bill period will be flagged to ensure purchasers receive the entitlement to the additional Common Share issuable as a result of the Share Split.

Based on the above, should I buy Jan/5, 9 or 24? Does it even make any differenc?
Thanks, Austin
Read Answer Asked by Austin on January 06, 2017
Q: You've referenced the relationship between SHOP and AMZN in recent questions, but haven't said anything specific about the relationship - could you tell me/us what the relationship is? Is there a financial relationship between the two, or does SHOP help AMZN indirectly through better inventory management of sellers?

Also, I used to own Channel Advisor (ECOM) (which I think is in a similar business as SHOP). I sold ECOM at a loss and am wondering how the two differ, and why SHOP is the better preformer, if you are aware?
Read Answer Asked by Cameron on January 06, 2017
Q: Hello 5i,
Wishing you a very happy and prosperous 2017. And thanks very much for your advice in 2016—it helped to make that a good year for me and many others.
I need to take money out of my margin account for a purchase. I am thinking of a strategy that sounds vagely illegal but I don’t think it is I haven’t read anything about this anywhere. . I thought I would run it by you.
I have high capital gains in fairly conservative blue chip stocks, such as BNS and BCE. I have been thinking about buying a substantial amount of the same stock at todays price, thus bringing my ACB down substantially and thus reducing my capital gains. Then selling the same amount for the planned purchase. Of course at a substantially reduced capital gain.
I know that there is some risk that the stock could move in the time between the purchase and the sale, but with a stock like this probably not too much. And if it did, I could hold it for awhile. Even if dropped considerably ( probably unlikely) I could make a case for holding it.
It seems like an altogether too easy a way to reduce capital gain taxes and make some money. Am I missing something here?
thanks
Read Answer Asked by joseph on January 06, 2017