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A merger is a corporate
action that results when two companies join together to form one
company. 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.
GainsKeeper monitors all mandatory corporate actions to U.S. equities, and
automatically adjusts each of your investments accordingly. 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.
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