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American Capital, Ltd. Message Board

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  • towigg1964 towigg1964 Apr 17, 2009 9:23 AM Flag

    dividend

    If I am reading these right, Ribi1's explanation, along with yours, would result in the same result if all shares were sold at once. The two interpretations would make a difference only if some of the shares were sold.

    Ribi1's explanation looks to be a bit easier to handle accounting wise, just treat the previous shares the same, and treat new shares the same as a purchase, with the declared stock dividend amount as the cost basis.

 
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