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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (43748)	8/7/2011 10:40:11 AM
From: Paul Senior	Respond to of 78748

Madharry, in past I generally had the brokerage reinvest distributions for my bdc's. The brokerage firm calculates my cost basis this way: for the numerator, the total cost for shares I bought. The distribution-amount shares I received from reinvesting are valued at $0. This numerator is divided by the total shares I hold--- i.e. shares I bought plus the share count from the reinvested distributions. For bdc FSC at this broker, I show I have a 12% gain for all shares bought and distributions reinvested since my purchases. Purchases were begun 8/'09. However at another brokerage firm wherein the past 12 months I began purchasing FSC in much larger amounts than previously and not reinvesting the distributions, it's easy for me to see that the stock drop has created a paper loss much greater than the couple/three distributions I may have received. Losses even if I include the dollar gains I show from the first broker.