For example, ANGI Homeservices Inc. (ANGI) was formed in 2017 with the merger of Angie’s List and InterActiveCorp, but it retained the stock history of Angie’s List, which has had the stock ticker (ANGI) since 2011.
Does that mean ANGI Homeservices Inc. (ANGI) retains the entire financial history of ANGI since 2011 even though it was just formed in 2017?
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What do you think “retains the entire financial history” means? The stock history is “who owns which shares and what they paid”. This is important to investors, because if you bought in 2012 for $20 (I made that number up, I don’t know the trading history of this stock) and you sell it today, the basis value (the part of the sale you don’t pay capital gains taxes on) is $20. Or maybe there was a 2 for 1 stock split in 2016, and your basis value is $10. Regardless, by retaining the stock history, the 2017 merger wasn’t a taxable event for the people who owned the stock and it didn’t reset their basis value.
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