What is cost basis? It is the term used for the tax cost of an asset. It usually starts out as the purchase price (plus commissions and fees) but "stuff" happens that can cause your basis to change. Things called corporate actions occur such as stock spinoffs, mergers, splits, split-offs, rights, or return of capital, all of which affect your cost basis. These are also called corporate reorg (reorganization) actions. Did you know thatclass action claim checksand even a corporate headquarters move (change of domicile)can affect your cost basis?
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