Question

SALE OF FRACTIONAL SHARES OF DISNEY STOCK AND NEWS CORP

Forum|Forum|6 years ago
February 24, 2020
1 reply
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Twenty First Century Fox distributed shares of News corp on a fractional basis and then merged with Disney. Both of these action resulted in sale of a fractional share of the "new" stock. How should the cost basis for that sale be calculated? How do I dived the cost basis of the original 21st Century stock?

You would have to start with the original price per share of Twenty First century.

Let's say you bought 21st Cent in 2010 for $15 per share.

Then you got 1.5 shares of News Corp for each share of 21st Cent.

The basis would be $15 / 1,5 = $10 per share for News Corp.

if you sold 0.6 shares the basis would be 0.6 X $10 = $6

You would then continue the process for Disney.

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