CTC’s taxable clients may have valuable holdings of common stock with a tax basis that is very low relative to market value, resulting in significant accumulated and unrealized capital gains. Often there is conflict between a client's interest in risk reduction through diversification and avoidance of capital gains taxes. CTC has the ability to analyze the issues involved and to quantify the trade-offs associated with different scenarios. CTC also advises on the use of hedging alternatives that permit diversification without triggering capital gains taxes.