How can I determine the base of the spinoff cost?
When the company participates in its business and spins it into a separate company with separate finances and shares, the company usually marks the base of the Cost of Spinoff. If not, you can use the formula to determine the cost base. This includes primarily multiplying, adding and dividing several integers, including current Spinoff stocks and the main company, their market prices and spinoff distribution ratio. Most factors can be found without the help of the main company, although you may need to contact the main company in terms of spinoff distribution. Although you get the equivalent value of Spinoff stocks in comparison with the main company shares, Spinoff's cost base is necessary to continue your investment, especially if you decide to sell Spinoff shares. If you do not know the distribution ratio, then you should contact the main company or contact its website for this picture; The current price of the shares can be found when looking at the stock market. Then the dYou multiply to get the market price of spinoff.
It is also possible to find the current price of shares of the main company by checking the stock market. Spinoff shares prices and the main companies must be found on the same day, otherwise it will not be correct. After you find out, adding to the Spinoff market price will give you the total market price.
The takeover of the spinoff market price and its division will provide the total market price by a percentage of spinoff. This next part is not necessary, but if you want to ensure that your answer is correct, you can divide the main price of the company's shares according to the total market price. If the numbers are correct, both spinoff and the main companies will add up to 100.
The next step is to multiply the percentage of Spinoff your overall investment in the main company. For exampleSD in USD (USD), then the base of Spinoff costs is $ 2,500. The division of this number by the number of shares of the Spinoff you have will provide you with the cost of the cost of each share. This number can be used to determine how many shares you own from the main company by deducting the base of the Spinoff cost and the overall investment; In this example, you would still owe $ 7,500 shares from the main company.