stock basis: confused by Split Adjustment Factor

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stock basis: confused by Split Adjustment Factor

Postby Bongleur » Tue May 24, 2011 1:13 am

>
"NOTE: The Closing Price, Day's High, Day's Low, and Day's Volume have been adjusted to account for any stock splits and/or dividends which may have occurred for this security since the date shown above.

The Actual Price is not adjusted for splits or dividends.

The Split Adjustment Factor is a cumulative factor which encapsulates all splits since the date shown above."
>

The data I have is the dollar value of the basis on the day of inheritance.

I'm trying to figure out the number of shares that represented at the time, so I can enter the data into our Vanguard account info line. It wants Quantity, Date Acquired, Cost Per Share.

The Split Adjustment Factor is stated to be 2:1.

The Closing Price is stated to be $36.50

So should I use 2 x $36.50 = $73.00 as the inherited price? Or the other way around: 1/2 x $36.50 ?

EDIT 1: More confusion. Just found a scrap of a note saying that at some point the broker told me a price and number of shares and total value. They add up price x shares = value, but the price is $24.52.

That guy was let go during the recession, and I moved the stock to Vanguard... so I don't know how I can go back and get that brokerage to figure it out... Besides, at the time of inheritance it was a brokerage that went under & was bought by UBS at some point...

EDIT 2: Crap. The dollar figures for "basis" given by that broker -- for all the stocks, not just the example above -- include the full-service broker fees... so I have no way to back calculate the price per share using the closing price...

The earliest statement I have is about 4 months after the inheritance date... quarterly dividends had been reinvested... monthly on the bond fund...

Maybe the best I can do is use that first statement showing a dollar value & number of shares & current value?

Then there is the fund that seems to have changed its name since then...

EDIT 4: That STUPID broker. He didn't give me the cost basis; he gave me the values on the day my wife changed the account from her name only to a joint account, to which they assigned a new account number. So I got nuthin... This happened near the bottom in 2008; the values are waaay below their actual 1999 values. Damn !!!!!

And the data in the Vanguard account dated as being acquired in 1999 is actually that 2008 data for shares & value.


EDIT 3: Vanguard cost basis wrong...

I clicked on the detail for this fund. It shows a number of shares and a price on the inheritance date in 1999.

Then it shows a line for every month, reinvesting dividends.
Except:
A) it starts in Dec 2005. Where are all the other months since 1999 ?
B) the Cost Per Share is always the same as the 1999 inheritance date price. That is wrong; I'm looking at the printed statements.

Going back only to 2005 seems to correspond to when UBS took over Paine Webber. They lost the data ???
I have no clue about why the price is wrong.

I really want to SELL these things, but I need to know the cost basis first !!!
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Postby G-Money » Tue May 24, 2011 3:43 am

I'm not an accountant or tax lawyer, and I don't know if this would be accepted by the IRS, but I'd use Yahoo! Finance to get a close-enough answer.

The "Historical Prices" for each ticker will tell you the actual price for each fund on the day of inheritance.

The "Historical Prices" page will also tell you when dividend distributions were made. If the subsequent statements show that dividends were reinvested, I think it would be reasonable to assume they were reinvested in the four months between the date of inheritance and your first statement date. Assume each dividend was reinvested on the date of the dividend distribution, and at the actual closing price for that day. Calculate the number of shares each dividend would purchase, and subtract this amount from the shares you had on the earliest statement. Also, each fund's page may also have information about past distributions.

That should get you fairly close to the actual price, share total, and total basis you had on the day of inheritance. Print everything out, maybe make a memo to yourself in case you ever get audited.

Good luck.
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Postby Bongleur » Tue May 24, 2011 5:21 am

Subtracting back from the earliest statement could work. The tedious-est part could be adding up the dividends reinvested from 1999 to date.

What an effing nightmare... No, wait, I'm actually awake... I've spent the whole night trying to put this together...
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Postby xerty24 » Tue May 24, 2011 9:13 am

If you post the fund and other info you have, maybe someone can help you more.
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Re: stock basis: confused by Split Adjustment Factor

Postby sscritic » Tue May 24, 2011 9:14 am

Bongleur wrote:The Actual Price is not adjusted for splits or dividends.

The data I have is the dollar value of the basis on the day of inheritance.

I'm trying to figure out the number of shares that represented at the time, so I can enter the data into our Vanguard account info line. It wants Quantity, Date Acquired, Cost Per Share.

If you want at that time and not today, then the number of shares at that time was basis on the day of inheritance divided by the price at that time, e.g.,

Basis was $5,255.25. Price was $22.75. Shares were 5255.25/22.75 = 231.

P.S. I don't know why you want the shares back then to enter into Vanguard today. I think you want something else again, but that's what you said you wanted.
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Postby G-Money » Tue May 24, 2011 9:20 am

Bongleur wrote:Subtracting back from the earliest statement could work. The tedious-est part could be adding up the dividends reinvested from 1999 to date.

What an effing nightmare... No, wait, I'm actually awake... I've spent the whole night trying to put this together...

I must be missing something. If you have a statement from 4 months after the inheritance date, don't you only need to work backwards 4 months? For the stocks/funds that pay quarterly dividends, that's probably just 1 calculation; for the bond funds, that would only be 4 calculations.
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Postby Bongleur » Tue May 24, 2011 4:08 pm

G-Money wrote:I must be missing something. If you have a statement from 4 months after the inheritance date, don't you only need to work backwards 4 months? For the stocks/funds that pay quarterly dividends, that's probably just 1 calculation; for the bond funds, that would only be 4 calculations.


Yes I think thats what I'm going to have to do... but where do I get the data on the dividends paid on the dates between day of death and the first statement I possess? M* does not go back that far.

I just called the broker & he gave me the commission amount which would currently be paid on the values shown on the earliest statement I possess... that might be a usable approximation. The old statements show only number of shares, current price per share and total account value; not unrealized gain or purchase price by lot.
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Postby G-Money » Tue May 24, 2011 4:15 pm

Bongleur wrote:
Yes I think thats what I'm going to have to do... but where do I get the data on the dividends paid on the dates between day of death and the first statement I possess?

http://finance.yahoo.com/q/hp?s=VFINX&a ... f=2011&g=v

Then navigate to "Daily Prices" to get the closing price on the day of each distribution.

No guarantee it's completely accurate, but IMO, it's good enough for government work.
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