D
Dick Balaska
Hi ho,
One thing i don't get, is why Interest Earned and Dividends increase my cost
basis. -- (This is just on the pretty graphs and don't really affect
transactions.)
So, if i buy 100 shares of XXX.O for $1000, my cost basis is $1000.
Next month i get a dividend of $10 and my cost basis goes up to $1010.
But, but, but, those shares didn't cost me $1010. My cost basis is still $1000,
or if anything, my cost basis is $990 (because i made that $10 back).
I've been stumped by this for years.
Can anyone esplain the logic behind this?
Danke
_,--"
`-._ ________-_______ "----
_----'--'--------------------------------'--'----_
//_| | \ Dick Balaska / | | _\\
(_____|_|__= Guilford Conn USA =__|_|_____)
_\_____=___ http://www.buckosoft.com/ ___=_____/_
\/-(o)-~~-(o)-~~-(o)-`------'-(o)-~~-(o)-~~-(o)-\/
Welcome to Connecticut; road legally closed.
One thing i don't get, is why Interest Earned and Dividends increase my cost
basis. -- (This is just on the pretty graphs and don't really affect
transactions.)
So, if i buy 100 shares of XXX.O for $1000, my cost basis is $1000.
Next month i get a dividend of $10 and my cost basis goes up to $1010.
But, but, but, those shares didn't cost me $1010. My cost basis is still $1000,
or if anything, my cost basis is $990 (because i made that $10 back).
I've been stumped by this for years.
Can anyone esplain the logic behind this?
Danke
_,--"
`-._ ________-_______ "----
_----'--'--------------------------------'--'----_
//_| | \ Dick Balaska / | | _\\
(_____|_|__= Guilford Conn USA =__|_|_____)
_\_____=___ http://www.buckosoft.com/ ___=_____/_
\/-(o)-~~-(o)-~~-(o)-`------'-(o)-~~-(o)-~~-(o)-\/
Welcome to Connecticut; road legally closed.