Series 65: 6.1.1.1.2.4. Tax Basis On Shares After A Stock Split

6.1.1.1.2.4. Tax Basis on Shares After a Stock Split

Sometimes a company will decide to split its existing stock into more shares (your 100 shares that were worth $100 each are now 200 shares worth $50 each). Less frequently, companies will do a reverse split, where more shares become fewer shares. In either case, an investor’s basis in the stock is adjusted in the same ma