1 Once upon a time, when you bought broccoli you bought the whole vegetable, stems and crowns. Then it became customary for grocery store produce departments to separate the crowns from the stems and to sell the crowns at a premium. 2  Iâm not a fan of this practice, because I like both parts of the broccoli plant.
A company's first issue of common stock to the public is called an Initial Public Offering. Afterwards, a corporation may issue new equity at any time in order to finance its growth. When new common shares are offered to existing shareholders first, this is called a rights offering.
Please retain those statements for your tax records. When shares are purchased through a broker (or other financial institution), retain broker statements illustrating purchase and sale information. This information is not available to Procter & Gamble, but may be available from the broker or financial institution. A 2 for 1 stock split occurred on 06/12/92, 20 shares were credited for the 20 shares already held, making the account balance 40 shares. The cost basis price is divided by 2 making the new cost basis $52.00 per share. The new âsplit sharesâ have the same cost basis of $52.00 per share.