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Re: Merck's (MRK) Spinoff of Medco (MHS)

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Posted by Mark on August 26, 2003 at 11:12:50:

In Reply to: Re: Merck's (MRK) Spinoff of Medco (MHS) posted by Arthur H Neill, Jr. on August 26, 2003 at 09:14:02:

: My Brokerage treated it as a spinoff and posted new purchase prices for the original purchase. They adjusted all the dividends from Merck and posted two purchases for MEDCO. The first of these was for 45 shares back in 2002 the date of my original purchase of Merck. The second purchase of 1 share they posted for July of this year. Makes no sense to me. I tried all the methods you suggest but could not get my figures to agree with theirs. Thanks anyway.

Hi Arthur,

That doesn't really make sense to me either. I did a quick web search, and
found this:

"The special dividend will qualify as a tax-free distribution to Merck shareholders for federal income tax purposes, except in cases where cash is received instead of fractional shares."

It sounds to me just like a distribution, and you would still own the
same number of Merck shares as before... I would recommend calling your
broker and asking them to explain the details of the adjustments they
made.

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP



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