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Paying off a member can be several ways: determine the value of that member's share of the portfolio (if the club adopts the NAIC's Unit Value System to track members' investments, this should be a relatively easy task.
Once you know the amount, you can take it out of the club's coffers or you can invite a new member to contribute an amount equal to the departing member's share
Or payoff the departing member by transferring securities to the member's ownership
If the club pays the withdrawing member by selling stocks, the remaining partners must pay taxes on the profits from the stock
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