Merger

Merger is when two companies combine together to form a new company all together.  Mergers can be taxable or non-taxable. If a merger is taxable, you will need to realize an “artificial” sale and re-purchase the security. For a non-taxable merger, you will need to allocate the cost basis to the new security.

TradeMax allows to adjust each of your investments. In many cases, a corporate action, such as a merger, will result in a new position or a change to the cost basis of a security.