What are BerkShares backed by, and how will all the BerkShares in circulation be redeemable for 5 cents more than they were purchased for?
BerkShares are backed by U.S. dollars on deposit at every participating bank. Every time a person purchases BerkShares, their federal dollars are deposited into an account held by BerkShares Inc. BerkShares that were put into circulation before February 11 were purchased for 90 cents each. When these BerkShares are exchanged for federal dollars, they will be redeemed for 95 cents each. BerkShares Inc. has received generous donations from individuals and foundations to cover the difference.
