In Reply to: Merger posted by Ray on June 23, 2000 at 10:58:45:
: On the Pfizer and Warner Lambert merger, say you have both stocks as a individual investments in a current portfolio and assume 100 shares of Warner yield 275 new shares of Pfizer. What is the best way to record while maintaining accurate cost basis for Pfizer?
: Attempt to record sale of 100 shares of Warner and purchase of 275 shares of Pfizer increases the cost basis for Pfizer. Please advise.
You have a couple of options:
1) Record a split in Warner for the 2.75 for 1. Change the name of Warner
2) Record a sell of 100 shares in Warner for your cost basis. Record
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