Is there a simple formula to compute stock cost basis with splits (regular & reverse)?

Answer 1

The total stock basis never changes with a regular or reverse split. For example, if you owned 100 shares of XYZ stock with a cost basis of $1,000 and a 2:1 split was declared, you would now have 200 shares of XYZ stock with a cost basis of $1,000. I think what you might be asking is what the cost per share is after a split. Using the example above, you began with a cost basis of $10/share ($1,000 cost/100 shares purchased). Now, after the split, your cost basis per share is $5.00 ($1,000 cost/200 shares now owned after the split). The individual per share cost basis is only relevant if you liquidate a portion of your position in that stock. If you sell your entire position, the number you're looking for to calculate gain or loss is the total amount of dollars invested in the stock (including any dividends reinvested).

Hope that helps!

Answer 2

opposite chop up won't shrink your fairness. you purely regulate your kind of shares owned, yet double the fee usually. opposite splits are many times achieved to consolidate the inventory pricing and make it extra eye-catching to different investors. it is likewise possible to work out a short term decreasing of fee, yet an prolonged term investment of the inventory is meant to yield bigger useful properties than if it have been left on the a million/2 fee, double volume. Your preliminary investment became $1800. You misplaced approximately $1600, or almost ninety% of the fee whilst it went to $a million.00 / share. it incredibly is at present at $4.05 form of and that they opposite chop up the inventory, to we could say a million for 7? Now your investment is worth $810 and you have have been given a internet loss of $990. nicely, in case you fairly want the $810, and your cash out, you will could desire to pay some brokerage expenditures, and that could fairly selection from no longer too plenty ($40 or much less in line with transaction) to tremendously much all you have. My advice may be to check out their suggestions, it fairly is obtainable on yahoo finance. at present the fee is down, however the fifty two week extreme is tremendously much $10.00 in line with share bigger than the present industry and it incredibly is trending upward. because you have already taken a huge hit and you have have been given no longer something to lose, i might carry directly to it and notice the place it is going interior of right here few months. solid success, i'm hoping it could pay off huge for you.