Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hi all! It seems like only a year ago I visited this board.......! ;)

This past year, Wrigley had a stock split, and it forced the sale of the fractional shares I held in their DRiP. I looked through the board here and found this post on the topic:

http://boards.fool.com/Message.asp?mid=22352938
(thanks Ira!)

But I am still confused. I have never sold any stock before, so this is a little new to me. I don't know how to figure a cost basis, and don't know how to reort this sale. I can tell you this, the forced sale was .532 shares @ $46.55 a share on 5/01/06. My earliest buy in the company was 10/11/04, and I bought 1 share at $62.11.

If I read the above referenced post correctly, then the buy price on the fractional comes from my earliest holding, which would be $62.11. Then, Ira goes on to point out that "Your cost basis is the fractional number of shares sold divided by the total shares in the earliest lot after the split times the cost basis of the earliest lot."


The earliest lot after the split (I am assuming he means the first shares I purchased after the split?) which would have been a reinvested dividend purchased .042 shares @$47.205.

I am pretty confused about what to do with this, and it seems paltry as the total amount was only $24.76, but I don't want to screw this up. Any one care to lend a hand to a mathematically challenged person? Thanks in advance....

Mike in NJ
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.