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How do you determine the cost basis of a stock involved in a spin-off?
Wiki User
∙ 16y ago
The "spinning-off" company must provide this information. You can usually find it on the website of the company which spun off the stock, generally under its "Stockholder Relations" tab. It would likely give you the percentage of the prior cost basis of the spinning-off company to apply to the stock which was just spun off, or a formula to apply which you must calculate yourself. Often, you, as a stockholder, would have received information prior to, at or just after the spinoff took place, especially if it was also part of a merger. This information can also be obtained in the public library, if you have a larger good one nearby, in the reference section. There is a publication called something like, I believe, "Capital Changes Report." Someone who works in the reference section can help you find the information within. See Related Questions for a good example of how to determine the cost basis of a stock involved in a spin-off. This particular example is related to the Altria spin-off of Kraft.
Wiki User
∙ 16y ago
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If you buy 1000 shares of a stock with a 10 Commission and then sell 100 of it with a commission of 10 and then sell 900 later with a 10 comission what is the cost basis of the 100 and 900 shares sold?
To determine cost basis you want to take the total amount paid + commission and calculate your cost per share. Lets say the stock was $10 per share and you bought 1000 shares with a commission of $10. Total cost would be $10,010. Divide that number by 1000 to get your cost per share. This equals $10.01 per share. If you sold 100 shares your cost basis is $1001. If you sold 900 shares your cost basis is $9009. To go one step further when you sell the stock subtract the commission from the sales proceeds. If you sold 100 shares of the stock at $15 with a $10 dollar commission then your total sales proceeds will be $1490. Now just take the sales proceeds of $1490 - the cost basis of $1001 to determine your capital gains or losses. In this example you have a gain of $489. Use this same process to determine gains and losses for the other 900 shares.
What is cost basis of stock?
The cost basis is the original value of an asset adjusted for stock splits, dividends or capital distributions. It is used to figure capital gain or loss for tax purposes
What cost basis should I use to figure out capital gain for stock which was a gift?
If the fair market value (FMV) of the stock was greater than the donor's adjusted basis at the time of the gift, your basis is the donor's adjusted basis plus any gift taxes paid at the time of the gift. http://www.irs.gov/faqs/faq-kw77.html
At the conclusion of a GRAT what is the cost basis of the stock for the beneficiary grantors original cost or grantors cost on the date GRAT started or cost on the date of transfer to the beneficiary?
Cost basis is equal to cost basis of original grantor plus any gift tax paid (the same as if the beneficiary had received the stock directly as a gift)
What is the cost basis for restricted stock units when you sell them?
Restricted Stock Units (RSU) Sales and Tax Reporting from The Finance Buff: http://thefinancebuff.com/restricted-stock-units-rsu-sales-and.html
What is the transfer of all or a portion of a subsidiary's stock or other assets to the stockholders of its parent company on a pro rata basis called?
stock split
What are the uses of a stock calculator?
The sues of a stock calculator are to determine the values of various stocks. In addition you can use them to determine the value of a stock portfolio.
How do stock market feeds help people?
Stock market feeds help people by allowing them to check the price of stocks on a real time basis and determine whether stocks they hold are rising or falling in value and what the bid and asking prices are for a particular stock at that moment in time.
Who are the parties involved in the stock investment?
In its simplest form, there has to be a buyer and a seller in order to efficiently transfer ownership of a stock. A company has to initially sell shares of its stock through underwriters who help determine the initial stock price and assist in the marketing efforts to place the stock through different brokerage firms and investment banks.
What was the price of Alltel stock on May 31 1989?
$12.31, as adjusted for the 7/17/06 spinoff of their wireline division. The unadjusted close was $15.04.
What is the cost basis of Lucent stock spun off in 1995?
The cost basis after the spin off was 27.99. In addition, the at-cost basis was at 72.01 of previous basis.
What is the cost of an Avaya stock when spun off in 2000?
http://www.news.com/Lucent-spinoff-falls-in-market-debut/2100-1033_3-246474.html Published: October 2, 2000, 2:35 PM PDT "Unlike most initial public stock offerings (IPOs), which open for trading at a specific predetermined price, Avaya had traded on a "when-issued" basis since Sept. 18, when it opened at $20.50 and closed unchanged, according to the company. Stocks that trade on a when-issued basis are conditional, because the stock has been authorized but not yet formally issued. Avaya's stock price climbed over the last week before opening at $22.88 today, the company's first day of regular public stock market trading."
What Reason for stock take?
The prime objective of stcok take is to determine the cost of the goods unsold. Stocking may vary upon the organisational rules ie. it can be done on a weekly, monthly or yearly basis.
If you buy 1000 shares of a stock with a 10 Commission and then sell 100 of it with a commission of 10 and then sell 900 later with a 10 comission what is the cost basis of the 100 and 900 shares sold?
To determine cost basis you want to take the total amount paid + commission and calculate your cost per share. Lets say the stock was $10 per share and you bought 1000 shares with a commission of $10. Total cost would be $10,010. Divide that number by 1000 to get your cost per share. This equals $10.01 per share. If you sold 100 shares your cost basis is $1001. If you sold 900 shares your cost basis is $9009. To go one step further when you sell the stock subtract the commission from the sales proceeds. If you sold 100 shares of the stock at $15 with a $10 dollar commission then your total sales proceeds will be $1490. Now just take the sales proceeds of $1490 - the cost basis of $1001 to determine your capital gains or losses. In this example you have a gain of $489. Use this same process to determine gains and losses for the other 900 shares.
What is cost basis of stock?
The cost basis is the original value of an asset adjusted for stock splits, dividends or capital distributions. It is used to figure capital gain or loss for tax purposes
How a stock list can help determine the opening stock and closing stock within a trading period?
definition for the elements of food cost: opening stock
What is nifty and how it is calculated?
nifty is calculated on the basis of liquidity of stock and on the basis of market capailization. it is calculated by free flot method.
