A Greek trireme. A Trireme is an ancient oar-driven warship powered by about 170 oars men. It was long and slender, had three tiers of oars and one sail. On the bow was a battering ram that was used to destroy enemy ships. The tip of the ram was made of bronze and could easily slice through the side of a wooden ship.
When you buy 1,000 shares of Ford at $14 and your broker charges you a $10 commission, your cost basis is $14,010 for those shares. That transaction is given a unique tax lot ID so you and the IRS can track those shares separately from other Ford stock you might buy later.
What cost basis is. In its broadest sense, cost basis refers to the price you paid for your shares. That figure is adjusted upward for reinvested dividends and capital gains and any commissions or transaction fees you paid.What cost basis won't necessarily tell you is how much money you made on an investment.It's intended to help you calculate your capital gains and losses when it's time to file your taxes.hat figure is adjusted upward for reinvested dividends and capital gains and any commissions or transaction fees you paid. What cost basis won't necessarily tell you is how much money you made on an investment. It's intended to help you calculate your capital gains and losses when it's time to file your taxes.