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Author: billmeister Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Stock dividend cost basis Date: 8/27/2001 12:07 PM
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I bought 30 shares of Heico (common) stock last year. They recently declared a 10% stock dividend (1 share of class A common stock for every 10 of common stock and class A common stock). Besides the 30 shares of common stock, I also have 3 shares of the class A common stock (as a result of the dividend). What would be the cost basis of the 3 shares of class A stock?
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53603 of 121095
Subject: Re: Stock dividend cost basis Date: 8/27/2001 2:12 PM
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I bought 30 shares of Heico (common) stock last year. They recently declared a 10% stock dividend (1 share of class A common stock for every 10 of common stock and class A common stock). Besides the 30 shares of common stock, I also have 3 shares of the class A common stock (as a result of the dividend). What would be the cost basis of the 3 shares of class A stock?

The ordinary treatment of stock dividends is to adjust your per-share basis to reflect the dividend. Thus, if your basis for the 30 shares was $33, your basis for the 33 shares is $33, or $1 per share. Absent any instructions to the contrary, that's how you do it.

Because there appear to be two types of stock involved, check the paperwork sent to you or the investor information section of the company's website. There may be something special about this distribution and the valuation of the shares.

Phil Marti
VITA Volunteer

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Author: billmeister Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53701 of 121095
Subject: Re: Stock dividend cost basis Date: 8/30/2001 12:59 PM
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The ordinary treatment of stock dividends is to adjust your per-share basis to reflect the dividend. Thus, if your basis for the 30 shares was $33, your basis for the 33 shares is $33, or $1 per share. Absent any instructions to the contrary, that's how you do it.

Because there appear to be two types of stock involved, check the paperwork sent to you or the investor information section of the company's website. There may be something special about this distribution and the valuation of the shares.

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I checked the paperwork and the investor information section, but I didn't find anything. I'll try the message board for HEICO.

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