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20.0¢ firefinch limited

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myluck05

29 Posts.

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08/06/22

11:14

Post #: 61888598
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Originally posted by MM0: ↑

To make sure I'm understanding this correctly...

Let's use your example breakdown but a price of $1 a share and 100,000 shares.

FFX - $35,000 (35%)
LLL - $65,000 (65%)

But you only get 1 LLL for each 1.4 FFX, so you will now have 71,428 shares of LLL and 100,000 shares of FFX.

So each FFX share now has a cost base of 35c instead of $1 - easy.

Do the LLL shares have:
a) A cost base of 65c per share (or "each LLL share will have a cost base of 65% of your average cost base for your FFX shares")
b) A total cost base for all shares of $65,000 = 91c a share cost base (or "your total LLL shares will have a total cost base equivalent to 65% of your total cost base for your FFX shares")

Presumably it has to be (b)?

At that point I'm not sure the split really matters as such in the long-term from a tax payable perspective (will affect timings and potentially what is a loss vs gain on paper, but should in theory net out?) but it may have the potential psychologically to drive buy/sell behaviour for a period of time.

Addendum to the above: a lot of people are presumably going to have the wrong cost base showing up on their broker tool for a time. Will that potentially affect psychology of trades too?

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I know there are post about it. I bought on 3/6/22. Am I qualify for it?

FFX Price at posting: 30.8¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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