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club_cafe: Stock name changes
Enter a cash dividend or distribution for the surviving stock. Set the distribution type to Return of Capital and enter NEGATIVE $20 as the amount of the distribution. You can ignore the ex-dividend date as it isn't relevant to this transaction.
 
Ira Smilovitz
 
In a message dated 11/13/2006 2:28:36 P.M. Eastern Standard Time, starrwp@earthlink.net writes:
In Bivio, how exactly do I do this? 
----- Original Message -----
Sent: Monday, November 13, 2006 12:12 PM
Subject: Re: club_cafe: Stock name changes

In a message dated 11/13/2006 10:15:00 A.M. Eastern Standard Time, sandy_starr@bivio.com writes:
One final question, I hope!  We have two situtations where
we have received a new stock and Ameritrade has charged us
$20.00 for a mandatory reorganizational fee.  Anonyx became
TPTX which created a $20.00 fee, I presume because it is a
new symbol to the stock market.  Then Agilent spun off
Verigy which is also a new stock  and we got another
mandatory reorganization charge from Ameritrade.  Do these
charges become part of the cost of the stock like a
commission or are they just expenses. I assumed they were
general expenses, but I am not sure. Do all brokerages
charge for new stock or is this an Ameritrade rip-off?
Many brokers charge similar fees. They should be recorded as a NEGATIVE Return of Capital from the surviving or new company. It is equivalent to paying a commission on the transaction as it adds to the cost basis of the new shares. This is not a current expense but will reduce the capital gain when the shares are sold.
 
Ira Smilovitz
 
Thank you very much!!!  Now it is very clear and done!! I am so glad that you and Rip and others are there for these pesky problems!!
----- Original Message -----
Sent: Monday, November 13, 2006 2:37 PM
Subject: Re: club_cafe: Stock name changes

Enter a cash dividend or distribution for the surviving stock. Set the distribution type to Return of Capital and enter NEGATIVE $20 as the amount of the distribution. You can ignore the ex-dividend date as it isn't relevant to this transaction.
 
Ira Smilovitz
 
In a message dated 11/13/2006 2:28:36 P.M. Eastern Standard Time, starrwp@earthlink.net writes:
In Bivio, how exactly do I do this? 
----- Original Message -----
Sent: Monday, November 13, 2006 12:12 PM
Subject: Re: club_cafe: Stock name changes

In a message dated 11/13/2006 10:15:00 A.M. Eastern Standard Time, sandy_starr@bivio.com writes:
One final question, I hope!  We have two situtations where
we have received a new stock and Ameritrade has charged us
$20.00 for a mandatory reorganizational fee.  Anonyx became
TPTX which created a $20.00 fee, I presume because it is a
new symbol to the stock market.  Then Agilent spun off
Verigy which is also a new stock  and we got another
mandatory reorganization charge from Ameritrade.  Do these
charges become part of the cost of the stock like a
commission or are they just expenses. I assumed they were
general expenses, but I am not sure. Do all brokerages
charge for new stock or is this an Ameritrade rip-off?
Many brokers charge similar fees. They should be recorded as a NEGATIVE Return of Capital from the surviving or new company. It is equivalent to paying a commission on the transaction as it adds to the cost basis of the new shares. This is not a current expense but will reduce the capital gain when the shares are sold.
 
Ira Smilovitz