Re: Stock Dividend?

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In Reply to: Stock Dividend? posted by David on August 31, 2004 at 01:00:06:

: A stock I own just issued a "stock dividend", 1 share for every 10 shares previously owned. What's the best way to handle this? Should I treat it as a 1.1 to 1 split?

: Thanks.
: David.

Hi David,

If you don't need to pay taxes on this "dividend", then I would record it
as you suggest, a 1.1 for 1 split. I suspect this is the case.

If you do need to pay taxes on that dividend for some reason, then you
should record it as a reinvested distribution, which will take care to
increase your cost basis by the amount of the reinvestment.

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

Replies:

• Re: Stock Dividend? David 02:50:24 09/01/04 (1)
  • Re: Stock Dividend? Mark 10:23:49 09/01/04 (0)