KMR gives distribution in additional shares rather than cash. How are these new additional shares created? Does the Market Cap of KMR increase every distribution and Market Cap of KMP reduce by the same amount? Yahoo shows Market Cap of KMR @ $9.08B and KMP @ $34.7B. Could this be the reason why KMR trades at discount to KMP?
The cost is the original cost basis of the shares you purchased. The stock you receive is treated like a stock split and have the same purchase date as your original shares. You can adjust the purchase date (they were never purchased, they were received) to your original purchase date at Fidelity. Call Fidelity and they will explain how.