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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?


To: pamela baker who wrote (1997)4/2/1998 11:59:00 PM
From: Justin C  Read Replies (1) | Respond to of 21876
 
Pamela, Maybe an example would help . . . If your original purchase
was 100 shares @ $37 = $3700, effective today your cost basis
is still $3700 but is calculated 200 shares @ $18.50.

Good luck with your daughter's college fund. Looks like you're
doing quite well so far.



To: pamela baker who wrote (1997)4/3/1998 7:24:00 AM
From: Sawtooth  Respond to of 21876
 
pamela: If your original cost was $64, your "cost per share" is now half of that, or $32, since your original investment has not changed but you have twice as many shares at half the cost. Commissions also have to be considered in your basis calculation for tax purposes when you sell.

Ex: you bought 100 shares at $64 = $6400. It split two for one. Your cost adjusts to 200 shares at $32 = $6400 (no change).

Tax ramifications or other planning considerations, I suggest you contact your professional advisor. Good luck with that Lu and Tlab! ...Tim