Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #62
Date: Wed, 23 Jul 1997 09:52:33 -0400 (EDT)
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persfin-digest Wednesday, July 23 1997 Volume 04 : Number 062
IN THIS ISSUE:
ADVERTISEMENT: MCI CONNECT FOR CC:MAIL [Oppenheimer Software <Connect-Sa]
Warning on Beardstown Ladies Books ["Paul Apollo" <papollo@hotmail.com>]
Warning on Mutual Fund Yield Claims [The Editor <ikrakow@shore.net>]
DATEK On-Line Brokerage and DRIPs? [Roger Fischer <roger.fischer@medtroni]
Re: Effect of Capital Gains Tax Cut on the Market /Credit Questions [Harr]
Re: Best Strategy for IRA Payments ["Mr. Brown" <sbrown@getonthe.net>]
Discover Card Web Site [rfrego@blitz.net (Sarge)]
Gasoline Prices by State? [Jack Law <jlaw@oz.kis.net>]
Silver Ingot Appraisal? [Jack Law <jlaw@oz.kis.net>]
How to Calculate Year-To-Date Returns [Susan Luntz <LUNTZ@fredonia.edu>]
Re: PCS and re: financial aid [Jeff Morgan <Morgajs@parsec.com>]
Re: Cap. gain taxes on sale of home? [etan@tellabs.com]
Re: College Tuition Exemption is Not a Special Interest Loophole [Rich Ca]
HELP!! Modem Problem [Brian James <bjames@rocketmail.com>]
Re: Cost Basis formula and tracking DRIPS [bbasden@orion.tstar.net]
IRR Calculation Isn't That Complicated [GeorgeS <pip@shore.net>]
Investment Mailing Lists? [Satish Kethineni <satishk@paul.rutgers.edu>]
Re: Alternate 401(K) Plan Provideres [owowo@NetGuard.Net (Richard)]
FYI: WSJ error on Vanguard redemption policy [Rich Carreiro <rlcarr@MIT.E]
State income tax / Sales tax [ravic@sdt.com (Ravi P Chivukula)]
gift stocks/taxes [taliadg@juno.com (talia D. Goeke)]
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Date: Wed, 23 Jul 1997 09:26:13 -0400 (EDT)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: MCI CONNECT FOR CC:MAIL
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------------------------------
Date: Wed, 23 Jul 1997 09:27:20 -0400 (EDT)
From: "Paul Apollo" <papollo@hotmail.com>
Subject: Warning on Beardstown Ladies Books
Be careful when reading the Beardstown Ladies books. According to the
author of Investing For Dummies, the returns the Ladies claimed to have
enjoyed are bogus. In fact, this author strongly suggests that
individual investors not purchase individual stocks, especially not as
part of an investment club, if you will be depending at all on the
hoped-for returns. According to him, mutual funds are the only
intelligent way to invest for "amateur investors".
Please don't flame me - I'm just the messenger! However, I have read
the series of three ...For Dummies books pertaining to personal finance
and investing, and they have helped me considerably. I now have a $3000
portfolio (and growing), when 6 months ago I hadn't saved a dime...Paul
Apollo
------------------------------
Date: Wed, 23 Jul 1997 09:31:55 -0400 (EDT)
From: The Editor <ikrakow@shore.net>
Subject: Warning on Mutual Fund Yield Claims
Paul's post reminds me of an article a read a while ago about how
mutual funds can goose up their yield claims. For example, a poorly
performing fund's returns can be hidden when a fund family (like Fidelity
or Vanguard) reorganizes their funds. Or a convenient time frame can be
used which hides some rotten years. Or a short period (like the last
month) can be used, which can really skew results. Comments?
Ira
------------------------------
Date: Wed, 23 Jul 1997 09:33:27 -0400 (EDT)
From: Roger Fischer <roger.fischer@medtronic.com>
Subject: DATEK On-Line Brokerage and DRIPs?
Has any persfiner used DATEK? I'm considering opening an account with
them. They advertise a $9.99 commission, guarantee to place an order
within 60 seconds of receiving it or the commission is waived, free
unlimited quotes, etc. I found their webpage through the Motley Fool:
http://www.datek.com.
I purchase shares through Medtronic's Employee Stock Program which are kept
in Medtronic's DRIP managed by NorWest. According to NorWest, they can
send me the stock certificates while continuing to re-invest all dividends
into the DRIP account. I can then send the stock certificates to a
brokerage account to sell when needed. I thought the stock had to remain
with the DRIP for safekeeping for the dividends to be re-invested. Do
other companies' DRIPs allow this?
Thanks,
Roger Fischer
roger.fischer@medtronic.com
------------------------------
Date: Wed, 23 Jul 1997 09:35:25 -0400 (EDT)
From: Harry Matthews <matthews@panix.com>
Subject: Re: Effect of Capital Gains Tax Cut on the Market /Credit Questions
Historically, cuts in capital gains taxes have led to massive short-term
trading (as security owners seek to lock in gains under the lower tax
taes) but have had no long-term effects. If the law does not pass until
October or November, expect a lot of churning, whose effect is
untraceable by next February. It's important to note that only about 5%
of all Americans own stocks in their own name; virtually all the
"beneficial owners" of equities are participants in either mutual funds
or retirement (401K, IRA, etc.) plans, whose managers are unlikely to
jump at the trend of the day. And yes, rich people (I can name a few
realtives) are much more likely to fail to pay credit card bills than
poor people.
As for credit ratings, I urge all of you to look at mortgage default
rates: the lower the principal, the lower the default rate. The simple
fact is that, when a payment is essential to a family's well being
(shelter or car), they make sure the obligation is paid, even if
resources are limited. People with limited means are actually the BEST
POSSIBLE credit ratings, though only a few creditors have figured this
out.
On another persfin issue, lending criteria....
Racial attitudes are especially counter-productive. I am on the Board
of Directors of a co-op in a racially mixed NYC neighborhood. Black
applicants to buy apartments often report many problems with mortgage
banks, even though they tend to be lawyers, investment bankers, and
corporate executives with impressive financial credentials. On the
other hands, freelance writers and film-producers who happen to be white
face very little tsouris. In my position as a Director, I'm delighted
to have all of these folks in our community -- but I can't help
wondering what the banks are worried about.
Yes, yes, yes, banks have a right to lend only to dependable borrowers,
but why is it so much easier for white folks to prove that they are
"dependable"? I will admit that property in African-American or
racially mixed areas commands a lower price than housing in comparable
lilly-white areas, but I appreciate a bargain when I see it and fail to
see why mortgagers cannot do the same.
B [>o<] W
> Date: Tue, 15 Jul 1997 21:18:45 -0400 (EDT)
> From: jphoebus@shore.intercom.net (John K. Phoebus)
> Subject: Re: How Can One Make Small, Regular Investments?
>
> Bboth Twentieth Century (800-345-2021) and T. Rowe Price
> (800-638-5660)
> allow even $50/mo. contributions to some of their funds.
>
> Source: Andrew Tobias, The Only Investment Guide You'll Ever Need
> (1996).
>
Almost any mutual fund company will let you set up regular monthly
payments (as little as $50) by automatic debit or wire transfer. It's
also possible to have your bank transfer any amount at weekly or mothy
intervals to a savings account; all banks LOVE this sort of
arrangement! From there, of course, it's possible to transfer
accumulated capital to otehr funds -- unless, of course, the savings
account promises free checking or other services. When you have enough
cash, you can get both free banking and a savings account.
> There are 2 colleges in the town where John lives. There is State
> College
> A and Private College B. The nearest college to John's home town is
> about
> 100 miles away. The fees and expenses at State College A are about
> $1500
> per year. The fees and expenses of Private College B are about
> $11,500
> per year. Because of John's parents limited income, John must go to
> college in his home town and live at home.
>
> John applied to State College A and at the urging of his high school
> also
> applied to Private College B just in case they have some unclaimed
> scholarship money. John was not accepted to State College A because
> of
> his low SAT scores. John was accepted at Private College B but he
> must
> pay the full cost of $11,500 per year.
>
> There was no unclaimed scholarship money available for John.
>
> State College A is a relatively new college and is not at capacity.
> It has
> plenty of room for students. They have a rule however that they only
> accept students with a SAT score of XXX or higher and John's SAT was
> lower. John has a part time job and he saves his income from that job
> for
> college expenses.
>
> He understands that he will probably never be able to save enough
> money
> from that job to pay the expenses of going to Private College B. In a
>
> recent conversation with John, he asked some very tough questions
> about
> his situation. I would appreciate any comments anyone might have
> abut
> John's questions.
>
> 1. Is State College A discriminating against John on the basis of
> mental
> ability? If it is discriminating, is it legal to do so?
In every state I read about in the papers, "mental ability" is precisely
the grounds on which legislators expect discrimination to be made. If
this is not a valid grounds for determining collevge admission, what,
pray tell, is?
At the same time, I am sympathetic to two more subtle arguments. First
of all, no single test, no single number, no single standard can fully
measure an individual student's ability. Having come of age in the time
when standardized tests first came to the fore, I know only too well how
easily scores can be manipuliated by a familiarity with the tricks and
techniques of standardized tests. I have a sheaf of certificates from
the State of Ohio testifying to my ability to do so! But when a ghetto
child finds that the SAT presumes her familiarity with yachting terms
(it HAS happened!), is her score really a fair assessment of her
abilities?
> 2. Is State College A saying in effect "John, you are not smart
> enough to
> come to our college and learn to be smart"?
No, the State College is saying that John is too inept at political
skills to sell his application to the school. At the same time, the
College is saying that, since John is apparently too inept to succeed in
an office job, he'll have to make do with flipping burgers or pumping
gas. My heart sinks with the latest news from the City University of
New York, where the Chancellor has been forced out who fought to improve
college prep courses in high school and to offer more courses for people
attending college while holding down full-time jobs.
All of this leads to my second objection to the "test score theory of
value." The people who might well profit form further education are not
necessarily the ones who score high on standardized tests. I can cite,
for example, an editor at the Cambridge University Press who never
finished his BA but manages to succeed in a heavily academic
environment. The list goes on an on...
The connection between money and knowledge, money and education, money
and equipment is, at best, simplistic, and, at worst, socially
disastrous.
> 3. Since both John and his parents pay state taxes that support the
> college, and the college has plenty of room for John, is it morally
> and
> ethically right to deny John admission no matter what his SAT scores
> are?
Is a state obliged to give a BA to anyone whose family pays enough? Is
academic ability really proportional to family income? If you're
convinced that SAT scores really measure ability, then John deserves to
flip burgers, regardless of what anyone pays in taxes. On what
conceivable basis can you argue that a young person's academic ability
is proportional to his or her parents' income? Even elite colleges
(like my alma mater) deny admission to aluimni's children who cannot
meet basic academic standards.
> 4. Is it morally and ethically right to deny John admission to college
>
> because of his low SAT test scores when the same college gives full
> scholarships to people with even lower SAT scores than John.
Well, Bob, do you believe in a free market? Does every college have the
right to determine its own target consumers? True, a college that will
admit anyone grants a degree that's of little value, but isn't this the
free market at work? If you want Big Government to intervene, what
standards do you propose? How will you measure success? How will you
deal with the "inefficiencies" (outlined elsewhere in your message) such
changes create?
Personally, I think the market model is totally inappropriate to the
questions you raise, but that's not the way you phrase them.
------------------------------
Date: Wed, 23 Jul 1997 09:36:39 -0400 (EDT)
From: "Mr. Brown" <sbrown@getonthe.net>
Subject: Re: Best Strategy for IRA Payments
>From: Joe Cabrera <toonhead@tiac.net>
>Which makes more sense for investing in an IRA? Putting all $2000 in it on
>January 1, or to break it up over the year to take advantage of dollar-cost
>averaging? The IRA is in an S&P 500 index fund.
I would think DCA. That's what I do. However, I have read it is best to
put as much as you can in as early as possible to take advantage of time.
Another one of those personal judgement calls.
Mr. Brown
------------------------------
Date: Wed, 23 Jul 1997 09:37:45 -0400 (EDT)
From: rfrego@blitz.net (Sarge)
Subject: Discover Card Web Site
I don't know how many on here us Discover card, but they now have
statement info online at:
http://www.discovercard.com
You will have access to :
- -transactions since your last statement
- -last payment received
- -payments and credits
- -cash back bonus award earned to date
- -credit limit
- -available credit
- -billing date
- -payment address
- -past 6 statements
Cheers,
Sarge
------------------------------
Date: Wed, 23 Jul 1997 09:38:15 -0400 (EDT)
From: Jack Law <jlaw@oz.kis.net>
Subject: Gasoline Prices by State?
Dear List Members,
In a couple of weeks I will be driving across two thirds of the United
States with my family. One of our big expenses will be gasoline, of
course. Are there any places on the internet where the range of
gasoline pump prices can be found in each state? I know with the array of
state taxes and transportation costs prices at the pump can vary. Thanks
in advance.
Jack Law
------------------------------
Date: Wed, 23 Jul 1997 09:39:03 -0400 (EDT)
From: Jack Law <jlaw@oz.kis.net>
Subject: Silver Ingot Appraisal?
List Members,
I recently inherited a Centennial Silver Sterling Classic Car Ingot Set
from my father. The collection, which comes in a fancy wooden collector's
box, consists of 100 antique automobiles cast by the Franklin mint. How
would I find the approximate value of such a collection? Are there any
internet sites that would have the information? How closely is the value
of the set pegged to silver prices?
If I decided to sell, would I be better off waiting for the return of
inflationary times to get the best price? I know nothing about this type
of collecting so any help would be greatly appreciated.
Jack
------------------------------
Date: Wed, 23 Jul 1997 09:40:27 -0400 (EDT)
From: Susan Luntz <LUNTZ@fredonia.edu>
Subject: How to Calculate Year-To-Date Returns
This thread does show how complicated and perhaps time consuming to
calculate the "exact" return on mutual funds, especially for all us good
little boys and girls who dollar cost average and diversify AND in
addition want to keep track of our millions (give or take a million).
That's why we have computers!!
But seriously, I have come across a LOTUS spreadsheet a number of years
ago. The directions were published in a now defunct journal called
"LOTUS". It was in the July 1989 issue. Being a stickler for having
the exact numbers, I created the spreadsheet for myself and added a few
features. I have also since converted it to Excel 7.0.
Besides Annualized return on investment, it keeps track of annualized
periodic return, cost basis, market value, $ gain or loss, tax cost,
average cost per share, etc. I think that it's pretty niffty.
I'd be glad to share the spread sheet and/or the directions for making
it. I don't have either in a form for e-mailing. Drop me a e-mail and
let's see what we can arrange.
Also, I have a description of the spreadsheet at
http://freenet.buffalo.edu/~af689
Happy Computing and Investing!
------------------------------
Date: Wed, 23 Jul 1997 09:42:00 -0400 (EDT)
From: Jeff Morgan <Morgajs@parsec.com>
Subject: Re: PCS and re: financial aid
>Also, I thought the cut-off for financial aid (as in loans -- low cost or
>otherwise) is much higher than $30K.
Does someone know where it is? What family income makes financial aid
application a waste of time (assuming very moderate assets)?
Can you recommend a book(s) about financial preparation for the
college? (my daughter will be a HS junior this year)
Thank you,
- - -Boris
There's an excellent financial aid/college funding FAQ at
http://www.finaid.org.
Cheers.
>Subject: Re: Cell Phones
Digital systems such as PCS can not be cloned
Yet.
and your conversations can not be heard by scanning devices.
Yet.
:-)
Technology giveth, and technology taketh away...
Cheers.
- --
Jeff Morgan - morgajs@parsec.com
------------------------------
Date: Wed, 23 Jul 1997 09:42:32 -0400 (EDT)
From: etan@tellabs.com
Subject: Re: Cap. gain taxes on sale of home?
Arnold Goldberg <ajg@pagesz.net>:
>Does anyone know the status of these laws, I'm
>particularly interested in the one where no cap. gn.
>taxes are paid on selling your primary residence.
Here's what little I do know. A couple of bills were introduced in the house
early this year, apparently with no followup. Last April, a new bill (H.R.
1391) was introduced by Portman, which seems to have some support with 19
cosponsors. There apparently has been no floor action since its introduction.
I get my information at http://thomas.loc.gov/bss/d105query.html.
If anybody knows anything more, I'd love to hear about it. We have a need to
downsize and I'm trying to figure out how soon I can do it without taking a
big loss. And it's a long way to 55.
Nate Stelton, etan@tellabs.com
------------------------------
Date: Wed, 23 Jul 1997 09:43:30 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: College Tuition Exemption is Not a Special Interest Loophole
>service being offered is a college education. If this becomes taxable, so
>will discounts from other employers. Discounts for meals in the company
>cafeteria will suddenly become a taxable event!!
So what? Compensation is compensation and should be taxed. Calling it
a "discount" does not change what it is. It is something of worth,
given only to employees of the company. If it walks like a duck...
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 23 Jul 1997 09:44:34 -0400 (EDT)
From: Brian James <bjames@rocketmail.com>
Subject: HELP!! Modem Problem
I know this is off-topic and I apologize, but if I want to continue
being a persfin member, i need to get it resolved. My modem cannot
find a dialtone, even though the phone works. A phone running through
the computer even works. The modem works fine at various repair
places, and even across the hall at a neighbor's apartment. Ameritech
said they found something wrong with the phone line, and shut it off
for a day. Which would have been fine, but nothing changed. Now they
insist that it's the computer, and computer repair people insist that
it's the phone line. In the meantime I have an expensive word
processor.
ANY thoughts are welcome, we're desperate. Please send directly to
bjames@rocketmail.com, as this is off-topic, and thanks to
everyone.
------------------------------
Date: Wed, 23 Jul 1997 09:45:12 -0400 (EDT)
From: bbasden@orion.tstar.net
Subject: Re: Cost Basis formula and tracking DRIPS
I use Quicken 6. I collect all my DRIP transactions in one account
(called DRIP, oddly enough) and it seems to track sales and resulting
capital gains very well.
Just don't transfer the transactions for any of your DRIPS into another
account, e.g., into a brokerage account for any round lot certificates
you may take possession of. Quicken still hasn't come up with a good way
to transfer all the many nitnoid transactions associated with long term
DRIPS and still keep the capital gains trail straight, except to tell
you to reenter all the transactions in the new account and delete them
in the old one. Not for couch potatoes.
Good luck.
Barry
------------------------------
Date: Wed, 23 Jul 1997 09:45:46 -0400 (EDT)
From: GeorgeS <pip@shore.net>
Subject: IRR Calculation Isn't That Complicated
The IRR is not that complicated. Consider a gal who starts the year with
$1000 in an account that returns 4% paid out quarterly (1% per quarter). In
the first example we say she adds nothing each quarter. The total at the
end of each quarter is
(principal + cash add )*(1 + annual IRR / #of payout periods)
or, for the first quarter
(1000 + 0 )*( 1 +0.04 /4 ) = 1010
Now if she wanted to check the interest rate she would assume a rate,
calculate the return for each quarter, and compare what she ends up with
($1041), at year end at the assumed rate, to what she has in the account
($1041).
First Example
no cash additions
quarter Prin@ Cash Div& Total@ Assumed rate
start Add Int end 3.00% 4.00% 5.00%
1 1000 0 10 1010 1008 1010 1013
2 1010 0 10 1020 1018 1020 1023
3 1020 0 10 1030 1028 1030 1033
4 1030 0 10 1041 1038 1041 1043
xxxxx xxxxx
Now suppose she is a little bit more enterprising and, at the beginning of
each quarter she adds a little bit to the kitty. In the case below she adds
100, 150,200 and 25 at the beginning of quarter 1,2,3 and 4. She uses the
same formula, and at the end she compares what she ends up at the assumed
rate, to the total she has in the account ($1524)
Second Example
variable cash additions
quarter Prin@ Cash Div& Total@ Assumed rate
start Add Int end 3.00% 4.00% 5.00%
1 1000 100 10 1110 1108 1111 1114
2 1110 150 11 1271 1269 1273 1276
3 1271 200 13 1484 1482 1486 1489
4 1484 25 15 1524 1520 1524 1528
xxxxx xxxxx
The whole trick is to organize by payout period, assume an interest rate,
and compare what you calculate to what you really have. The iterative part
is the adjustment the assumed rate of return so that the total at the end
of the year matches what you have in the account. That's it.
It does make a little difference if you add the money at the beginning or
end of the quarter. To account for this effect you can do one of several things:
1) do the calculation monthly,or
2) assume only 1/2 the cash deposited in a quarter gains in that
quarter,or
3) do the calculation twice assuming all money is deposited at the
beginning or end of each quarter.
FWIIW, the above paragraph is simply splitting financial hairs. Just do the
calculation the simple way, indicated in the examples, and you will get
close enough.
Enough math, now for the commentary:) If your broker cannot do this for you
he is either
1) uninterested in your account, or
2) (as we say in the 2nd grade) a really stupid idiot.
In either case I'd say it's time for a new broker
------------------------------
Date: Wed, 23 Jul 1997 09:46:15 -0400 (EDT)
From: Satish Kethineni <satishk@paul.rutgers.edu>
Subject: Investment Mailing Lists?
Hi Ira,
I was wondering if anybody knows any good
stock investment mailing lists ?
thank you
- --
Satish Kethineni
Internet Systems Developer
Reuters Health Information Services
satish@publish.reutershealth.com
------------------------------
Date: Wed, 23 Jul 1997 09:47:26 -0400 (EDT)
From: owowo@NetGuard.Net (Richard)
Subject: Re: Alternate 401(K) Plan Provideres
>Subject: 401(k) Plan Providers - Complaints about Met Life
>
>Our firm has been using Met-life as a 401(K) plan provider. To date, it
>has been a less-than-stellar effort. We are only given 4 options in which
>to allocate our funds (growth, stock index, treasury, and a "diversified"
>option). These options have not provided adequate returns. I am
>attempting to get some more information to give to our firm administrator
>more options. Does anyone have any suggestions for a fairly low cost,
>401(k) plan that can provide service for approximately 40 employees?
Try Vanguard! They are the most boring and cost effective fund family out
there! And I like boring and cost effective.
Richard A. Bauer ---- St Louis MO
www.netguard.net/~owowo/index.htm
------------------------------
Date: Wed, 23 Jul 1997 09:49:02 -0400 (EDT)
From: Rich Carreiro <rlcarr@MIT.EDU>
Subject: FYI: WSJ error on Vanguard redemption policy
I saw this on Vanguard's WWW site (www.vanguard.com) today and figured
I'd pass it along in case people were misled by the WSJ article:
+=====begin forwarded stuff=====+
Contrary to a report published in the Wall Street Journal,
shareholders can redeem shares by telephone from Vanguard Index Trust
- - 500 Portfolio and other index funds.
In an article published Monday, July 21, about measures being taken by
mutual fund companies to limit short-term trading in index funds, the
Journal incorrectly reported that the 500 Portfolio did not allow
investors to sell shares over the phone.
In fact, all Vanguard funds allow telephone redemptions. The telephone
redemption privilege, which allows shareholders to arrange for shares
to be redeemed and a check for the proceeds to be mailed, is
automatically established on all Vanguard accounts unless the account
owner does not want it.
Telephone exchanges between funds are another matter, however. The six
portfolios of the Index Trust--and certain other Vanguard funds--do
not permit telephone exchanges.
+=====end forwarded stuff=====+
Rich Carreiro
ARPA: rlcarr@mit.edu
UUCP: ...!mit.edu!rlcarr
BITNET: rlcarr%mit.edu@mitvma.edu
------------------------------
Date: Wed, 23 Jul 1997 09:49:31 -0400 (EDT)
From: ravic@sdt.com (Ravi P Chivukula)
Subject: State income tax / Sales tax
Hi Everybody :
Is there some source where I can find :
1) Which states require you to pay state income tax
and how much ( The lowest bracket) ?
2) Given a zip code, what is the sales tax in that area ?
3) Ranking of cities/states by cost of living ?
If I recieve direct e-mails, I shall post a summary to this digest.
Thanks in advance,
Ravi Chivukula
------------------------------
Date: Wed, 23 Jul 1997 09:50:45 -0400 (EDT)
From: taliadg@juno.com (talia D. Goeke)
Subject: gift stocks/taxes
Hello,
>From 1976 t0 1982 I worked for Pacific NW Bell (now US West). When I
quit in 1982 I was given 6 shares of AT&T stock. However, at the time I
was traveling and never received the original paperwork and didn't know
that I had been given stock. I found out last year about the stock and
since them increased it to 20 shares in their drip program.I have since
gotten a paper that shows the six original shares were issued 2/2/82 but
it does not say the price of the stock issued.
My question is if I close/cash out my account, how do I report those 6
shares on taxforms? I vaguely understand capital gains and feel I can
figure out that part of the IRS taxes for the 14 shares that I bought but
I don't know what I do about those six shares. Do those 6 shares just
have zero cost basis since they were given to me? Currently I own 20
shares and with the low prices of that stock right now, once you subtract
my cost basis for the additional 14 shares it shows only about $150
profit.
Any feedback would be greatly appreciated.
Talia Goeke
taliadg@juno.com
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End of persfin-digest V4 #62
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