For long term investment, such as held to maturity securities. For example, if one buy...
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Accounting
For long term investment, such as held to maturity securities. For example, if one buy 1000 shares of stock at price of $10, then the cost basis of the stock is 10000/1000=10/share.
but when the company declares a 10% stock dividend on this stock, what will this stock's new cost basis be? on my notes it said the cost basis will be 10000/1100. but why did the 1000 change into 1100 after the company declares 10% dividend?
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