Examples of Negative Basis in a sentence
As used in this Section 5.8, the term “Negative Basis Partner” means any Partner who or that withdraws from the Partnership and who or that has a Negative Basis as of the effective date of the Partner’s withdrawal.
As used in this Section 5.8, the term “Negative Basis Partner” means any Partner who or that withdraws from such Partnership and who or that has a Negative Basis as of the effective date of the Partner’s withdrawal.
In some cases, firms may change their behavior by increasing recycling or treatment efforts without affecting the marginal costs of production.
For example, UBS (2008): “Negative Basis Super Seniors: these were Super Senior positions where the risk of loss was hedged through so-called Negative Basis (or "NegBasis") trades where a counterparty, such as a monoline insurer provided 100% loss protection.
Sells for $50 AB $100 AR $50PD ($110) AB ($0) —> NOT AB ($10) —> Negative Basis Gain $50 ($10) 2) Capital Expenditures incurred after incurrence of the negative basis offsets to the extent of negative basisEx: TP bought minerals for $100, took $110 PD, sells for $50 after investing $30 of capital expenditure into the minerals AB $100 AB ($10) AR $50 PD ($110) CE $30 AB ($20) AB ($10) AB $20 Gain $30 3) Ordinary cost deductions are NOT reduced by negative basis Ex: TP got min.