Frontier Communications Had A 15 to 1 Reverse Split In 2017. This Changes The Cost Basis Per Share.
Split Announced Ratio and Effective Date on May 10, 2017:
Frontier Communications had a 15 to 1 split for shareholders of stock on July 10, 2017.
Here is an example of how this worked. If you owned 150 shares before July 10, 2017 with a total cost of $1,500 ($10 cost per share), you will own 10 shares after the split. The total tax cost basis will still be $1,500 after the split, but the tax cost basis per share after the split will be $150.
In theory, this should also increase the stock price by a factor of 15. In real life, this might not happen. The increase might be a little more or less than 15.
This split complicates an already complicated tax cost basis (or stock basis) computations for AT&T and its "offspring." The AT&T tax cost basis can most easily computed using the AT&T Divestiture Basis Tracker. You can order the Denver Tax Software, Inc. AT&T Divestiture Basis Tracker.
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