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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Dorine Essey who wrote (44411)	8/14/2000 4:54:30 PM
From: FaultLine	Read Replies (1) \| Respond to of 45548

Dorine, The "tax free" part means that no tax obligation was incurred when the PALM shares were issued to you. If it had been cash or some other certain types of stock distribution, you would have had an immediate tax bill. 3COM made sure your total value was the same immediately before and after the instant of distribution so you didn't really "gain" anything when that event occurred. You will, of course, still have to pay taxes on any profits above your cost basis when you sell someday, just as usual. Regards, -tf