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.

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Happy investing!

Crista Huff

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