How Do You Calculate The Stock Price On Split Shares?
Calculating cost basis for stock shares is an important skill that all stock investors must learn. Fortunately, the process is relatively straightforward. The main key lies in keeping good records of the original stock purchase. Find the original record of purchase of the stock. Get the date, number of shares, dollar amount of the purchase and any commission paid. If the stock sold was bought through a series of purchases, get these details for each purchase. Find out how many times the stock has split between the time of purchase and sale, and the terms of the split. If you don’t have this information readily available, then you will need to contact the stock transfer agent to get it. Go to the company’s website and get a number for investor relations, and they should be able to direct you to the correct party. Calculate the basis according to the terms of the split. If you bought 300 shares of stock at $20 per share and it split twice at 2 for 1, then it’s as if you really bought 120
