TN 5 (05-94)

Historical Stock Quotes (SSI resources):

http://finance.yahoo.com/

A. Introduction

Shares of stock represent ownership in a business corporation. Their value shifts with demand and may fluctuate widely. The following guidelines apply to all stocks, including preferred stocks, warrants and rights, and options to purchase stocks.

B. Operating Policy

1. Co-Ownership

Absent evidence to the contrary, assume that each owner owns an equal share of the value of the stock.

2. Salability

Absent evidence to the contrary, assume that the owner of shares of stock can sell them at will at current value.

3. Broker Fees

Broker fees do not reduce the value that stocks have as resources.

C. Policy —Alaskan Native Corporation

Through at least 1991, shares of stock in an Alaskan native regional or village corporation are not resources (see SI 01110.115 B.3. and SI 01120.105).

D. Procedure

1. Ownership

Ask the individual to submit the stock certificate or most recent statement of account (including dividend account) from the firm that issued or is holding the stock. Document the file with a photocopy. If the individual does not have this documentation, have him/her obtain a statement from the firm. Provide assistance as needed.

2. Value — Publicly Traded Stocks

1. Which Value to Use

The CMV of a stock as of the first moment of a given month is its closing price on the last business day of the preceding month.

The values of over-the-counter stocks are shown on a “bid” and “asked” basis. For example, “18 bid, 19 asked.” Use the bid price as the CMV.

The “par value” or “stated value” shown on some stock certificates is not the market value of the stock.

2. Sources of Information

The closing price of a stock on a given day can usually be found in the next day's regular or financial newspaper. If the value of a stock does not appear in the newspaper, you may obtain the information from the internet (e.g., finance section of Yahoo). A link to an internet site is provided above in these instructions.

As a last resort, contact a local securities firm. Record the appropriate closing price and the source of the information on an RC.

3. Value — Stock That is Not Publicly Traded

a. General

The stock of some corporations is held within close groups and traded very infrequently. The sale of such stock is often handled privately and subject to restrictions. As a rule, it cannot be converted to cash within 20 working days.

b. Evidence

The burden of proof for establishing the value of this kind of stock is on the individual. The preferred evidence is a letter or other written statement from the firm's accountants giving their best estimate of the stock's value and the basis for the estimate, e.g.:

• most recent sale,

• most recent offer from outsiders,

• CMV of assets less debts on them,

• cessation of activity and sale of assets,

• bankruptcy, etc.

Keep the statement or a photocopy of it in the file.

c. Extent of Ownership in Question

See RS 02101.510 when the bona fides of a closely held corporation may be an issue; i.e., when there are indications that the extent of an individual's ownership is being manipulated to evade the statutory resource limits.