SPIN-OFFS "secret hiding places of stock market profits" Message Board

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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits"

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To: Stewart Whitman who wrote (284)	1/5/1999 2:42:00 PM
From: LKO	Read Replies (2) of 1185

Perhaps a slightly OT question - If a company splits such that 1 share of X (pre-split) becomes 1 share of A and 1 share of B (after split) and a so called "tax free:" manner, how does one figur out the cost basis for the share when one sells A and/or B ? Is is simple arithmetic (cost of X * 1/(1+1)) or is it a fraction that is decided by the specifics of each Spinoff ? Just wondering...

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