philmarti[at]aol.com (Phil Marti) wrote

- quote -

Wrong. The correct answer is:
Basis for HS is $1560.00 and the basis for NWSa is $116.04.

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pujnkml[at]yahoo.com (pujnkml) writes:

- quote -

The way they told you to in the paperwork you ignored. If
you can't find it, get in touch with NWSa's investor
relations.

Phil Marti
Topeka, KS

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I tried searching using what I thought were relevant
keywords, but I haven't come across the answer to this
scenario yet. It is about figuring out basis for stocks
after one company acquires part of another.

Let's say I bought 80 shares of GMH in Oct-1992. On Dec 24,
2003, NWSa buys part of the company, leaving me with 24
shares of HS and 4 shares of NWSa. In February, 2004, I
sell all shares of HS and NWSa. How do I calculate my basis
for these sales? I have an idea (using ratio of shares and
what not) but want to know what the official answer is. For
illustration, if you need share prices let's assume these
numbers:

GMH on date of purchase: $65
NWSa on Dec. 24, 2003: $35
HS on Dec. 24, 2003: $45
NWSa on date of sale: $40
HS on date of sale: $50

Thanks for the education..
Matt

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