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Calculate cost basis after stock conversion

I purchased 200 shares of Company A stock at $10 per share. Company B purchased Company A and the 200 shares converted to 150 shares then worth $25 per share. I am now selling 15o shares of B. How do I calculate cost basis for 150 shares?
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2 Replies

Calculate cost basis after stock conversion

Ok ... back to third grade math class. 

 

You owned 200 shares @ 10 share = 2000 cost basis

Now you own 150 shares  with a 2000 cost basis(what it was worth at the time of conversion is immaterial to your basis)   ...  2000 divided by 150 = 13.34 per share

Sell  15 shares x 13.34 per share = $200 cost basis

ThomasM125
Expert Alumni

Calculate cost basis after stock conversion

The cost basis is what you originally paid, or $2,000 in this case (200 shares x $10.) I think you mean you sold the entire investment, if so your cost basis is $2,000.

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