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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121160  
Subject: Re: Dividend, stock price & capital gain Date: 2/11/2006 9:02 PM
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However, the wording of the text on Ameritrade's site led me to the more convoluted resolutions of the situations.

Just for completeness, I'll point out the issue Ameritrade is dancing around. One more example.

Bought for $3.50. Got the $4 return of capital. Subtract the $4.00 off the $3.50 and -- whoops -- our basis is negative. So instead of having a negative basis, you recognize capital gain of .50 per share and have a basis of zero.

--Peter
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