| How is the basis of a stock calculated, when it is split? |
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| Written by Skyler W. Fairchild, CPA | |
| Tuesday, 10 April 2007 | |
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Generally, you divide the adjusted basis of the old stock by the number of shares of the old and new stock. The result is the new basis per share of stock. Please realize that if the old shares were purchased in various lots for different amounts, then the adjusted basis of the old stock must be allocated on a lot by lot basis.
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