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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST
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To: David E. Taylor who wrote (40263)2/29/2000 11:49:00 AM
From: serious_stuff  Read Replies (2) of 45548
 
When COMS hands out the Palm shares, they are using the term "dividend". Two questions: 1) is it taxable at that time the way a dividend would be

2) Assuming that it is a nontaxable transaction, when does the 12-month clock kick in that determines whether it is a short term or long term gain? From the date of purchase of the COMS shares, or the date of distribution?

I, like everyone else, is intrigued at how this thing will play out. My guess is that the COMS/PALM share price gap will be controlled by the arbs, much the way a buyout situation is handled.
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