To appropriately record and receipt gifts of publicly traded securities to the University and to comply with federal tax law and University stewardship guidelines.
May, 2023Responsible Office
The Office of the Treasurer will determine the value of publicly traded securities in accordance with Generally Accepted Accounting Principles and the requirements of Treasury Regulations.
In general, if there is a market for securities on a stock exchange or an over-the-counter market, the mean between the highest and lowest quoted selling prices on the date of the gift is the fair market value per share of the gift.
If there were no sales on the date of the gift but there were sales on dates within a reasonable period both before and after the date of the gift, the fair market value is determined by taking a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the date of the gift.
If securities are listed on more than one exchange, the records of the exchange where the securities are principally dealt in should be employed if such records are available in a generally available listing or publication of general circulation.
The University will typically use values recorded in trade publications, such as The Wall Street Journal or electronic pricing services.
Government bonds will be valued at the mean of the bid and asked prices at the end of the day, on the date of the gift, as recorded in trade publications.
For corporate bonds, accrued interest as of the gift date is included in the gift amount. Corporate bond prices may be determined from a dealer if pricing is not readily accessible from published sources.
Mutual funds will be valued at their closing net asset value (closing price) on the date of the gift.