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Automatic reorganization for MNST and ACT
Two of our stocks underwent reorganization this past month.
Monster Beverage has traded products with Coco-cola and
Actavis is now Allergan (started out as Watson!). Both seem
to have traded stock with no commission charged so far.
Monster listed this as a 1:1 exchange, Actavis just listed
it as a name change. Both "delivered" and "received" shares.
My question is this: Do I process a sell and rebuy for these
shares, thus incurring capital gains and a new cost basis?
These show up on the brokerage statement but not on the list
of transactions or confirmations from TD Ameritrade. Back
when Actavis merged with Chilicott and redomiciled out of
the US, the broker sold our shares and rebought them, some
sort of requirement because of the new foreign headquarters.
This was a different process this time, it seems.
Thanks
Peg Wentworth, Women's Investment Network, Lancaster PA

Dear Peg,

Actavis bought Allergan and then changed its ticker to AGN. If you go to Accounting>Investments, you will see that has already been adjusted for you in bivio. Unless you owned Allergan shares originally, there are no entries you need to make.

Coca Cola took an equity position in MNST, but they did not purchase the company completely. I do not see any changes that need to be made to your MNST position. They just have a new player helping to manage the company.

Laurie Frederiksen
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On Thu, Jul 2, 2015 at 9:50 PM, Margaret F. Wentworth <pegw@comcast.net> wrote:
Two of our stocks underwent reorganization this past month.
Monster Beverage has traded products with Coco-cola and
Actavis is now Allergan (started out as Watson!). Both seem
to have traded stock with no commission charged so far.
Monster listed this as a 1:1 exchange, Actavis just listed
it as a name change. Both "delivered" and "received" shares.
My question is this: Do I process a sell and rebuy for these
shares, thus incurring capital gains and a new cost basis?
These show up on the brokerage statement but not on the list
of transactions or confirmations from TD Ameritrade. Back
when Actavis merged with Chilicott and redomiciled out of
the US, the broker sold our shares and rebought them, some
sort of requirement because of the new foreign headquarters.
This was a different process this time, it seems.
Thanks
Peg Wentworth, Women's Investment Network, Lancaster PA