SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 43: Answer and Explanation

Question: 43

Which of the following situations would NOT make determination of cost basis more complicated than usual?

• A. The issuing firm changed its name.
• B. Multiple purchases were made.
• C. Stock dividends were declared.
• D. The firm returned capital to shareholders.

Correct Answer: A

Explanation:

A: Choice A is correct because changing the name of the issuing firm would have no financial effect. Choices B, C, and D are incorrect because each may add to the complexity of the cost basis calculation.