GRN will be taken over by BRK @ a rate of aprox 1 BRKA share for 286 GRN,AND 1 BRKB for every 9.5 GRN the remainder will be returned in cash.You can buy GRN and wait till the 4th quater and switch it for BRK,in the interim you will collect a slight dividend.The advantage of doing it this way is you save $100 per brkb share based on the discrepacy in price between the two business. You will be able to buy an extra B share if you purchase an A share in this way.The risk you take is if the deal doesnt go through, highly unlikely!The other risk you can occur is if the deal goes through but not as a merger than you might have a tax liabilty or a tax loss depending on whether the price is higher or lower in the 4th quater than now and you will get 3% of your shares back in cash.That too is highly unlikely!
An advantage of purchasing BRK indirectly through GRN can be ,that if BRK and GRN ARE THE SAME PRICE IN THE 4TH quater which they will be,and BRK is at a lower price than today,you can sell your GRN for a loss,then purchase BRK this will give you a tax loss,although your cost basis on your BRK will be lower, but nobody on this board is ever going to sell his BRK shares so whats the difference.
<<<....and BRK is at a lower price than today,you can sell your GRN for a loss,then purchase BRK this will give you a tax loss,although your cost basis on your BRK will be lower, but...>>>
The IRS says that if you sell a stock for a loss and repurchase anything that is "substantially" similar within xx days, you can not take a loss... Since GRN & BRK will merge, you will run into IRS problems with this strategy...
..........I have been a satisfied "B" shareholder. I think that there are many wealthy "A" holders that can hold forever; I'm just not one of them. The Bs have been handy for childrens education, helping aging parents, home improvement, buying vehicles, and any of the other costs of everyday living. Best of luck