what's the price/share for DRIP stocks?

Question

I've been enrolled in a [D]ividend [R]e[i]nvestment [P]rogram for 30 years. In some quarters, I did not have sufficient funds in my account to purchase an entire share. When I start to sell shares purchased in the DRIP, how will I determine the initial purchase price (and the date of purchase) for shares [there will be many] who's "purchase" spans more than one quarter? I figured I needed to calculate this INITIAL COST before I begin calculating the current BASIS by applying the appropriate percentages for the six stock-splits since 1978. DO I NOT?

The issue is NOT that I lack historical documentation, nor that the company lacks such data. The PRECISE issue is what is the purchase date and purchase price of a whole share of stock which spans more than one quarter? I.E. x fraction was bought in quarter 1, z fraction was bought in quarter 2; some portion, say y, of the quarter 2 purchase finally makes x + y = one whole share; yet, this is not a straightforward arithmetical exercise, IS IT? All the company will say is "we don't compute BASIS." I'm not asking for the BASIS. I can well calculate that myself ONCE I KNOW THE INITIAL COST OF SUCH A SHARE WHOSE INITIAL COST IS A COMPOSITE OF MORE THAN ONE QUARTERLY TRANSACTION.

as of 5/17, all responses seem to beg the question. Since I have in my position every quarterly statement from the DRIP since it's inception 30+ years ago, the issue is NOT one of record-keeping. The issue is: what is the initial purchase price of one whole share of stock given that more than one quarter elapsed before there was sufficient balance in the DRIP account to purchase such a whole share? Please note that the market price on any two dividend record dates (which I also have) are not the same. The question is: what arithmetical operations must be performed on the data from the quarterly statements to derive the initial purchase price of a whole share of stock formed in such a composite way?

[to responder K M] what is a DRIP fund and how is whatever it is related to the operation of a Dividend Reinvestment Plan operated by a US Blue Chip corporation?
What is APS?

Answer 1

If you are fortunate, the DRIP plan run by the company will have kept track of this for you, and can supply the information.

If you are not fortunate, then you'll have to cobble this up yourself and will be quite sorry you didn't have good records.

Answer 2

purchase price or current cost basis = initial purchase cost (cost for the stock plus any company/broker fees), + cost of each and all reinvested dividends. Divide this total cost by the current number shares for cost basis per share. You don't need to bother with "appropriate percentages." For your tax forms, capital gains section, separate all purchased shares held over 1 year from those held less than one year. Purchase date = Various.

Answer 3

Total amount invested divided by number of shaares. Afraid you have some research. First check with the Drip fund as some have the APS.

Answer 4

It all depends on the inssuing Corporation issuing the DRIP plan. Read the Prospectus.

You may want to consider www.sharebuilder.com another affordable way to invest in Amercian Corportions.

Answer 5

Good luck. If you were not keeping month to month records while you were acquiring stocks, you will have a tough time going back, now, to look for purchase prices.

Answer 6

hi check this link its good




http://buyingandsellingshares.blogspot.com/




.