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Posted by Dick Balaska on December 16, 2006, 1:02 am
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No dividend reinvestment. The dividends go to the cash part of the account.
This particular account is an IRA, no taxes yet, but i sort of see the logic on
the dividend taxing thing applying to the cost basis.
I guess my only problem is that in the purdy graphs[1], i can't see how much
i've actually invested.
[1] I can't believe after 10 years that the graph engine still suffers that
single-threaded-broken drawing algorithm at it's heart.
dik
>
>As Andrew noted, you didn't mention anything about dividend reinvestment to
>buy new shares. But that's what it sounds like you're talking about. Are
>you?
>
>
>
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>> Hi ho,
>>
>> One thing i don't get, is why Interest Earned and Dividends increase my
>> cost
>> basis. -- (This is just on the pretty graphs and don't really affect
>> transactions.)
>>
>> So, if i buy 100 shares of XXX.O for $1000, my cost basis is $1000.
>> Next month i get a dividend of $10 and my cost basis goes up to $1010.
>> But, but, but, those shares didn't cost me $1010. My cost basis is still
>> $1000,
>> or if anything, my cost basis is $990 (because i made that $10 back).
>>
>> I've been stumped by this for years.
>> Can anyone esplain the logic behind this?
>>
>> Danke
>>
>> _,--"
>> `-._ ________-_______ "----
>> _----'--'--------------------------------'--'----_
>> //_| | Dick Balaska / | | _\
>> (_____|_|__= Guilford Conn USA =__|_|_____)
>> ______=___ http://www.buckosoft.com/ ___=_____/_
>> /-(o)-~~-(o)-~~-(o)-`------'-(o)-~~-(o)-~~-(o)-/
>> Welcome to Connecticut; road legally closed.
>
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