jstran, I think this particular FAQ has not been updated. If I recall correctly, it's been a bit over a year since CAPS began to reduce your original pick price to reflect dividend payouts. From a post long ago, TMFEldrehad suggested this formula as the method to calculate the new cost basis: NB = (CP/OB)/(CP - Div), where NB = new basis, CP = closing price the day before the ex-div date, and OB = original basis.I'm not sure if this was the precise formula that TMF settled on but if not, it's pretty close conceptually.My question was related to being able to track those adjustments due to dividends being paid out. Unless you make a note of your original pick price, you'll not be able to track the difference between the original and adjusted basis.Cheers,Derek
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra