Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
here is what I had:

1700 shares of stock A, with cost basis of $10.
1100 shares of stock B, with 3 different cost basis'.

Company A has acquired company B (pooling of interests)on Dec 21. Stock B is no longer traded, but my broker has not processed the transaction. My 1100 shares of B will be converted into 4141 shares of A, with cost basis of 1129 @ 7.23, 1129 @ 7.56 and 1883 @ 6.90. Today stock trades at about 8.75.

If I sell short about 4000 shares of stock, later, when the broker processes the transaction, I will be able to instruct him to cover the short sale with specific shares. But I can not do that (send instructions) at the time of short sale. And being able to identify shares is the matter of declaring gain or loss.

The sequence of purchases was like this:
1700 of A, 300 of B, 300 of B and and 500 of B.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.