The basis for the stock will also decrease proportionately. For example, if you bought 100 shares at $50 and the stock split two for one, then you now have 200 shares with a basis of $25 per share. If the stock had split four for one, then your new basis would be $12.50 per share.
http://www.ehow.com/how_4898277_calculate-stock-split-basis.html
For example, if you have 100 shares of Intel (INTC) stock, worth $100 a share, you get 200 shares worth $50 each in a 2:1 stock split. As you can see, a stock split does not affect the total value of your investment, but rather simply gives you more shares with a lower price per share.
https://www.acapam.com/what-is-a-stock-split-and-how-does-it-impact-cost-basis-your-taxes/
Example: You own 150 shares of ABC with a basis of $24 per share, and another 100 shares of ABC with a basis of $28 per share. The stock splits 2-for-1. After the split, you own 300 shares with a basis of $12 per share, and 200 shares with a basis of $14 per share.
http://fairmark.com/capgain/basis/splits.htm
This page explains how to determine your basis when you receive stock as a result of a non-taxable stock dividend or a stock split. The explanation covers your initial basis in the new shares you receive, and your adjustment in basis to the shares you already owned. This discussion does not cover the following:
http://fairmark.com/capgain/basis/splits.htm
How toTell If Stock Has Split A stock split does not change the value of a company or an investment in its stocks. It merely rearranges the number... How to Calculate Stock Split Cost Base Several types of stock events can change the cost basis for your stock--stock splits and reverse stock splits are two of them....
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Regardless of the type of split, it will affect the basis price at which you bought the stock. Failure to take this issue into account when computing capital gains and losses can result in substantial under reporting of income on your 1040 to the Internal Revenue Service (IRS).
http://www.ehow.com/how_4898277_calculate-stock-split-basis.html
Divide the total basis by the number of shares you have after the stock split to calculate the average cost basis. Finishing this example, divide your $210 basis by your 20 new shares to find your average cost basis per share is $10.05.
http://finance.zacks.com/figure-average-cost-basis-after-reverse-stock-split-2035.html
For example, if you own 10 percent of the shares of the company before the reverse split, you'll still own 10 percent of the shares of the company after. However, knowing your average basis per share will help you determine whether you're making a profit when you sell the stock. Step 1.
http://finance.zacks.com/figure-average-cost-basis-after-reverse-stock-split-2035.html
Your adjusted cost basis for 100 new shares is now $200.00 per share, with the. same total cost $20,000.00. You still own the same percentage ownership of the business and no true economic. value has been added to your investment by the reverse stock split.
http://www.costbasis.com/stocks/stocksplits.html
The cost basis of your assets is adjusted for splits. A stock split reduces your cost basis per share, but not your total cost basis. Example: If you own shares in a growing company, such as Nike (NKE), for a long period, you are likely to see several splits over the years. Let’s assume you invested $5,000 in Nike stock 10 years ago and bought 100 shares at $50.
https://www.acapam.com/what-is-a-stock-split-and-how-does-it-impact-cost-basis-your-taxes/
how does a stock split affect cost basis
Regardless of the type of split, it will affect the basis price at which you bought the stock. A stock split affects regardless of the type of split, it will affect the basis price at which you bought the stock.