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My wife and I will be receiving several hundred shares of stock in an insurance company that recently demutualized. I've been told that I should hold the stock for at least a year before selling it for tax purposes. Is this rule true for a demutualization? What would the impact be if I have to/choose to sell some of it now?

Also, where on the Fool should I post general questions about my current investments. The "Fools and their Money" forum looks about the best I've seen. I am really just starting to look at investing, and this stock thing has thrown me for a bit of a loop. I want to be smart about how I handle it.

Thanks!
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No. of Recommendations: 1
My wife and I will be receiving several hundred shares of stock in an insurance company that recently demutualized. I've been told that I should hold the stock for at least a year before selling it for tax purposes. Is this rule true for a demutualization?

Check the paperwork you got about the shares or investor relations at the company. Every one of these I've seen was zero basis with an acquisition date of the date you took out the policy, but that doesn't mean that yours will be the same.

Phil Marti
VITA Volunteer
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