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Author: prime13 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121110  
Subject: lot identification question Date: 9/20/2000 5:39 PM
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Here is a dumb question that arose from the Ford reorganization/value enhancement plan [VEP] this summer.

I have been reinvesting the dividends of my Ford shares at TDWaterhouse and so I had a non-whole number of shares before the VEP. Waterhouse decided that they needed to cancel the DRIP for Ford before the VEP and sold the fractional share I had. My question is what 8/10 of a share was this. Was this the first 8/10 of a share I bought using the FIFO policy. Or was it the last 8/10 of a share because it was this last fraction that caused the problem for Waterhouse, and so it seems to be a clearly indicated lot that was sold. Would it have made any difference if I had just started my Ford Drip and I had just one dividend purchase of this exact fractional share?

This question is really more academic than anything else since the difference between the basis of my first F purchase and my last F purchase is just a couple of dollars and so the tax consequences are negligible. I am just wondering if this forced sale of a fractional share makes any difference.

Thanks.

prime13
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