SIE: Tax Basis On Shares After A Stock Split

Tax Basis on Shares After a Stock Split

A stock split occurs when a company decides to split its existing stock into more shares. The number of shares increases and the price per share decreases proportionally. For example, your 100 shares that were worth $100 each are now 200 shares worth $50 each. And when a company chooses to do a reverse stock split, the number of shares decreases and the price per share increases pro