SIE Exam Question 16: Answer and Explanation

Question: 16

What is the cost basis of securities received as an inheritance?

• A. The current market price at the time the securities are received by the heir
• B. The purchase price of the securities when they were originally bought
• C. The market price on the date of death
• D. The market price on the date of the original purchase

Correct Answer: C

Explanation:

The cost basis of securities received as an inheritance is the market price on the date of death.