I had a question about how the cost basis and capital Gains would be handled for the company stock I own when a merger is completed. I won't be using company names but this merger is already announced and public so this is not any insider info.
I work for company A and we are merging with company B. All of company A's stock will be converted to Company B stock at a set %.
So my question(s) are when we convert to Company B's stock I would assume that my cost basis would be what ever the price of the stock is on the day it converts correct? This would also adjust my capital gain and regardless of how long I have owned Company A stock the clock starts over on the day it converts to company B stock? If that is the case I could also sell the new stock and pay little to no capital gains if the stock price barely moved that day(assuming I have no restrictions on selling for a certain amount of time)
Thanks in advance.
Submitted June 11, 2021 at 07:38AM by Jrasch12 https://ift.tt/3gg5LYV
