## Earnings distributed / allocated on the end of year report do not mach members' ending % of club ownership

What a member gets from an income or expense during the course of the year is determined by the memberâ€™s share of the club on the given day, which is based on the number of Valuation Units the member has on that day.

For example: From January to July there were two club members, Ann and Betty, who each owned 49% of the club while a third member, Cindy, owned only 2%. In July, Cindy deposited more money so that she has the same number of units the Ann and Betty have, and they each then have 33% of the club from July to December.

Now, say that there are two sets of proceeds from stock sold during that year, one in June and one in November, each for \$100. The proceeds from the sale in June go 49% to Ann, 49% to Betty and 2% to Cindy. The proceeds from the sale in November go 33% to each of the three. Ann and Betty would each end up with more than 33% of the earnings of the club at the end of the year. In this case, of the \$200 distributed, Ann and Betty each get \$82 and Cindy gets \$35.

That is why the members' percentages of the year end distribution do not, and are not meant to, equal their percentages of ownership at year end.