Two factors come into play: First, good quality applicators do a better job of applying paint, and more uniformly, than poor applicators. As a result, they achieve better hide, or coverage. Second, painting technique is a factor that could contribute to overspreading the product.
Liquidation and Free Riding. A liquidation violation occurs when the client sells a security to satisfy a cash obligation for the purchase of a different security after trade date. This is a violation because the sale of the second security will not be settled by the time the first purchase settles.
For the minority shareholders. the liquidation is a taxable transaction, and the general rules of gain or. loss and basis apply.'. In the case of the parent corporation, the basis of the assets received. in liquidation is the same as the basis to the subsidiary..