How is cost basis of a stock figured for tax purposes? and New York City, Lower Manhattan, Financial District, Wall Street, NYSE, New York Stock Exchange

How is cost basis of a stock figured for tax purposes?

I need to know how mergers, splits and dividends affect the cost basis of the stock?


Stock best answer:

Answer by ninasgramma
The basis is your investment in the stock. Considering your stock as a whole, not per share, you basis will not change because of a merger or split. Your basis per share will change.

In the case of a merger, the conversion from one company's shares to another is announced at the time of the merger.

In the case of a split, your basis per share is your basis divided by the number of shares after the split.

Dividends received in cash do not affect the original basis of your shares. If you reinvest your dividends, that amount invested is added to the basis of your investment.

A nontaxable dividend which is in the form of new stock issued to the owner does not change the owner's basis. The basis per share is changed in the same manner as a stock split.

A taxable stock dividend increases the basis of the investment. The basis per share is unchanged.

Stock

New York City, Lower Manhattan, Financial District, Wall Street, NYSE, New York Stock Exchange


Image by (vincent desjardins)
en.wikipedia.org/wiki/Wall_street
fr.wikipedia.org/wiki/Wall_Street
fr.wikipedia.org/wiki/New_York_Stock_Exchange

SOURCE : Wikipédia

Wall Street is the financial district of New York City. It is also the name of the street running from Broadway to South Street on the East River. Over time Wall Street came to signify a geographic location encompassing a commercial downtown Manhattan neighborhood as well as signifying the historical financial center of the United States. The term has become a metonym signifying New York-based financial interests. It is the first permanent home of the New York Stock Exchange, the world's largest stock exchange by market capitalization of its listed companies. Anchored by Wall Street, New York City is one of the principal financial centres of the world.

Several major U.S. stock and other exchanges have headquarters on Wall Street and in the Financial District, including the NYSE, NASDAQ, AMEX, NYMEX, and NYBOT.
Wall Street is important in a nation such as the United States in which former president Calvin Coolidge once remarked "The business of America is business" and in which rising stock markets are called bulls and falling markets are called bears.

Wall Street est le nom d'une rue située dans le sud de l'arrondissement de Manhattan à New York (États-Unis). Wall Street part à l'est de Broadway en direction de l'East River jusqu'à South Street ; elle traverse une partie du Financial District, un quartier d'affaires.

Au xviie siècle, elle formait la limite nord de la colonie de Nouvelle-Amsterdam appartenant aux Néerlandais. Ceux-ci y avaient construit un mur fait de rondins de bois et de terre, pour se protéger des indiens Lenape et des colons britanniques. Le mur ne fut jamais mis à l'épreuve des batailles mais fut démoli par les Anglais en 1699.

Avec le temps, Wall Street a fini par désigner l'ensemble du quartier ainsi que la plus importante bourse du monde, le New York Stock Exchange (NYSE). Par métonymie, l'expression renvoie aujourd'hui au monde de la finance new-yorkaise.
Le Wall Street Journal, qui porte le nom de cette rue, est un quotidien économique dont l'influence est internationale, publié à New York par Dow Jones & Company.

---

Orignal From: How is cost basis of a stock figured for tax purposes? and New York City, Lower Manhattan, Financial District, Wall Street, NYSE, New York Stock Exchange