robtm
Level 10

Get your taxes done using TurboTax

Yes, that is correct. There is no taxable event until you sell your shares. However, in a merger there is sometimes a cash in lieu where fractional shares of less than 1 share are not converted to the new company stock but you receive cash instead, usually this is a small amount and the cost basis would be what you paid for the same fraction of your old stock and could be a gain or loss.

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