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Odd Lots and Charitable Giving Posted by Bill Homer [Email]  (#3427) [Profile/Gallery]
(more from Bill Homer) on Mon, 22 Nov 2004 10:30:27
In Reply to: Don't know yet if it's a loss or not..., RedAeroGirl, Mon, 22 Nov 2004 09:33:39 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Odd lot offers are made mostly for the benefit of the corporation - they have to send shareholders the same information, i.e. annual reports, whether you have 1, 100 or 100,000 shares, have to maintain you in their records, allow you to propose agenda items for the annual meeting, etc. They would prefer not to deal with small odd-lot shareholders, and will make a reasonable offer to buy you out. The buyout price per share is ususally based on the average share price over a predetermined time period, so you do not have to be concerned with market timing to get a reasonable price, and there is usually a reasonable transaction fee with no "odd lot" surcharge (if applicable).
Judging by what's playing on the radio, "'tis the season to be jolly" already. The end of the year is a big season for charitable giving - most people have some idea what their financial year was like and donate accordingly. If you donate your shares to the charity (or charities) of your choice, you can typically write off the then-current (date of donation) value of the shares and not have to deal with any accounting to determine the "cost basis". From what you are saying, determining the cost basis with professional help may eat up most of the value, so this might be a good alternative.
On the other hand, my guess is that you started with AT&T stock, received stock in each of the seven RBOCs, Lucent, Avaya, AT&T, ATW. As AT&T was perhaps the most widely held stock before the divestiture, there are many, many people in a similar situation, so there might be some central repository of cost basis information out on the internet.
Disclaimer: I am not an accountant and this advice is worth what you are paying for it.
posted by 129.188.33...
, Mon, 22 Nov 2004 10:30:27 <-- Viewing This Message
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