Kraft Foods Spin-Off — What’s My Cost Basis?

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Kraft Foods Inc. spun-off shares on Tuesday, October 2, 2012.

For every one share you previously owned of Kraft Foods Inc. (KFT) you now own 1/3 share of Kraft Foods Group Inc. (KRFT) and one share of Mondelez International (MDLZ).

As an example, my 2012 Model Growth & Income Portfolio owned 132 shares of KFT.  It now owns 44 shares of KRFT and 132 shares of MDLZ.

The cost basis appears as if it will be split approximately 35.09% to KRFT shares and 64.91% to MDLZ shares.  Here’s a link to the corporate explanation of the new cost basis of the two companies’ shares.

Important:  I researched this information on many famous investment websites, and most of them contained incorrect and/or seriously vague information.  DO NOT run with the information from just one website, because you might end up making a serious mistake in recalculating your portfolio!  Click here for the most accurate information I found.

Readers are welcome to send questions about spin-offs, cost basis, etc. to research@GoodfellowLLC.com.

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Happy investing!

Crista Huff

(This article was originally published on Oct, 6, 2012.)   Investment Disclaimer Release of Liability: Through use of this website viewing or using you agree to hold www.GoodfellowLLC.com and its employees harmless and to completely release www.GoodfellowLLC.com and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do. Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. When information is provided herein from third parties — such as financial news outlets, financial websites, investment firms, or any other source of financial information – the reliability or completeness of such financial information cannot be guaranteed. The information contained on this website is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. This is not an offer or solicitation for any particular trading strategy, or confirmation of any transaction. Statements made on the website are based on the authors’ opinions and based on information available at the time this page was published. The creators are not liable for any errors, omissions or misstatements. Any performance data quoted represents past performance and past performance is not a guarantee of future results. Investments always have a degree of risk, including the potential risk of the loss of the investor’s entire principal. There is no guarantee against any loss. * * * * Goodfellow LLC is a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.


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