The profit one realizes by selling a position one has held for longer than one year.
For example, if one buys a stock or bond and sells it five years later for more than what one paid, this is considered a long-term capital gain.
By establishing a liquidating trust pursuant to section 1123(b)(3) in a confirmed plan of reorganization or liquidation, a debtor can transfer causes of action and other assets to a trust, for future liquidation and distribution to the debtor’s creditors, and avoid delaying plan confirmation.
The creditors become the trust beneficiaries and their claims are paid from trust assets by a waterfall established pursuant to the plan.
In other instances, conversion may be one of several options.The actual net annual distributions you receive will vary from the estimate set forth above with changes in the trust's fees and expenses, in dividends and distributions received, currency fluctuations and with the sale of trust securities.The actual net annual distributions are expected to decrease over time because a portion of the securities included in the trust will be sold over time to pay for organization costs.A company will sometimes issue a tracking stock when it has a very successful division that it feels is underappreciated by the market and not fully reflected in the company's stock price. Liquidation rights are often based on the relative values of the tracked and total assets at the time of issuance, but are sometimes fixed in proportion to relative market capitalization immediately prior to liquidation.into another class of stock subject to certain restrictions.