How Does Reverse Stock Split Affect Cost Basis. Finishing this example, divide your $2010 basis by your 20 new shares to find. How stock splits affect cost basis.
The Effect Of Stock Splits On Adjusted Cost Base | Adjusted Cost Base.ca Blog from www.adjustedcostbase.ca
Divide the total cost basis by the total number of shares you received in the reverse split, including fractions. Therefore, a reverse split would reduce the share count to a point where the stock price better reflected the actual size of the current business. For a split (like 3:2 or 2:1 or 3:1), you increase the number of shares by the split factor, which necessarily reduces the per share cost basis.
Cost Basis After Reverse Stock Split. (new), the merger with salomon inc., the name merger with travelers and name change to citigroup inc., the merger with associates first capital corp and the merger. Following the stock split, you must reallocate your basis between the original shares and the shares newly acquired in the stock split.
When Do Companies Decide To Split A Stock? - Quora from www.quora.com
How to figure date acquired and cost basis on stock that spun off shares before undergoing a reverse split? So in summary, you had 1517.961 shares of a security with a specific cost basis. (new), the merger with salomon inc., the name merger with travelers and name change to citigroup inc., the merger with associates first capital corp and the merger.
