Re: Ticker symbol conversion

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Posted by Mark on October 17, 2006 at 18:27:34:

In Reply to: Re: Ticker symbol conversion posted by Jamie on October 17, 2006 at 18:04:31:

: : : Just inquiring what is the best way to handle when a mutual fund undergoes a non-taxable conversion (in a taxable account) from one ticker symbol to another. At the same time the number of shares may be slightly different. I tried using a "spin-off", but I still have the original shares still there, when I need those to go to zero without ending up on the capital gains report.

: Ok, you've given me a suggestion for dealing with splits and rounding, but it didn't answer the above. I will try to be more specific. On August 18, 2006 the fund company converted 3505.788 shares of NAMOX to 3509.131 shares of AOTIX. The ticker symbol NAMOX is no longer valid and the ticker symbol AOTIX did not exist prior to that date. Since this is a non-taxable conversion, I can not just sell NAMOX and buy AOTIX. I think using a "spin-off" to acquire AOTIX may work, but I'm having problems getting rid of the NAMOX shares and having no capital gains.

: Hopefully, this explains what I'm trying to acomplish.

: Jamie

Hi Jamie,

I'd suggest using a split instead of a spin-off for this. The spin-off would leave you with 2 investments, and doesn't transfer the full history to the spun-off child. For this example just record a split of 3509.131 for 3505.788 and change the investment properties so the name/symbol are for the new investment. If you want to remember some of the old details you could record a note transaction here, or put it in the memo of the split transaction.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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