Cost basis for spinoff company

Question

I owned Stillwell financial stock (they were the parent company of Janus Capital). In 2001, they separated. What is the cost basis for each stock?

Answer 1

Unfortunately the information you have about there being a spinoff is incorrect.

Janus Capital (unlisted) merged with Stillwell Financial (listed).

For shareholders of Stillwell, the only effective change is that your Stillwell shares became Janus Capital shares on a 1:1 basis. There were no events (splits, spinoffs etc.) that would affect your cost basis.

Therefore your cost basis is whatever you purchased it at in 2001.

Source: Internal databases as Norgate Data.