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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Bhaskar Sengupta who wrote (16339)	8/26/1998 10:54:00 AM
From: NewsTrader	Respond to of 77398

(NewsTraders) -- The Morgridge Family foundation, an affiliate of Cisco Systems Inc. (CSCO), registered 100,000 common shares with a market value of about $10.2 million, according to a Form 144 released by the SEC.

To: Bhaskar Sengupta who wrote (16339)	8/26/1998 11:27:00 AM
From: Lynn	Respond to of 77398

If you should have 37.5 shares after the split, you will get a check for the .5 shares (if you hold the certificate) or have the amount for the .5 show up in your account (if the shares are in a brokerage account). If the shares at the split are valued at $50 each, the check will be for $25-- .5X$50. When it comes to tax time, you pay capital gains tax on the .5 share sold. Depending on when you bought your shares of CSCO, you record this as either a short or long term gain. To determine the gain, you have to figure out your cost basis for your shares. So... if you made one purchase of CSCO 2 years ago and each share now has a cost basis for you of $10/share (total amount the shares cost you divided by the shares you hold), you have a long term gain of $20 ($25 -.5 X$10 = $20). No, the figures I am using are wrong, but you get the idea. Call up the IRS 800 number and get instructions for Schedule D for a better explanation. Regards, Lynn, who is not getting a fractional share at the split