pk
Level 15
Level 15

Investing

@trneaville , fundamentally , this is no different than  acquiring multiple batches of the same stock over the years ( except that  the split creates new stocks / daughters  where each stock is worth   different  --- original investment divided by the new  total  number of stocks --- i.e. a basis adjustment ).   Thus when you dispose  off the stocks  your basis is different.  This is in contrast to adding new stocks where  you need to keep track of basis  for each acquisition i.e. each batch and when you sell you have tell the  broker which batch you are selling , else it is assumed to FIFO.

 

Does this make sense ?   Is there more I can do for you ?