European Stars And Stripes (Newspaper) - February 7, 1988, Darmstadt, Hesse                                Page 20 the stars and stripes sunday. February 7,1988 investor s guide by Bill Doyle q. My Man i fund pays dividends every three months and capital mini distribution annually both of which i re in int to Purchase additional shares. And i occur tonally Send in checks to buy still More Sham. Each investment ind  buys full ind fractional shares r he third Decimal Point. My problem is keeping rack of my Biera Cost per Namre which will be my basis Cost Doyl for Lux a rpm if i liquidate the account. What method is acceptable to the internal Revenue service a. Vou won t need to know your aver age Cost per share if you completely liquidate your account by redeeming All your shares. In that Case you simply add up All the Money you invested your original investment the checks you occasionally sent in and All your reinvested dividends and capital gains Dis libations to learn your total basis. When you redeem All your shares the difference Between hat total basis and the redemption Check you receive is your capital gain or capital loss. If you redeem Only some of your shares you can use the average Cost method. Add up All the Money you in vested Divide by the number of shares you own and you have your average basis per share. Multiplying thai average per share Cost by the number of shares redeemed ills you the basis of the re deemed shares. After hat first redemption you sub tract the basis of the redeemed shares from the Tola Basi you previously calculated. The resulting number is the total basis on your remaining shares. Your or share Cost won t change unless or until you make a new investment in the fund and or reinvest dividends or capital gains distributions. At that Point the amount of your new investment and or reinvestment is added to your total basis. Divide that new total basis by the increased number of shares you own and you know your new Cost per share. You la have to recalculate your average Cost every Lime you make a new investment or reinvest the average Cost method with All its complications is used by most Mutual fund shareholders and has the irs stamp of approval. Other methods acceptable to the  arc Fifo and specific  under Fifo for first in first out the shares you redeem arc those held the longest. You have logo to your records to determine the Price at which those shares were purchased through invest ment or reinvestment. Under specific identification also called the identified share method you instruct the Mutual fund to redeem the shares you purchased on such and such a Date or from a certain Date through another Date. This method Al lows you to redeem your highest Cost shares thereby producing the lowest tax Able profit or even a loss. A 1 switched my investment from one Mutual fund to another often during 1987 and Hud a in Ihler of profits ill Amill. To eliminate the misery of reporting tech Proll As a separate capital gain on my income tax return is it permissible to add the profit on each fund redemption to the dividend i received from that fund and pay whatever tax applies. A. No do that and you will throw the irs computers into a Lizzy and yourself into trouble. You re required to report your dividends As such and each profit from the redemption of Mutual fund shares As a separate item on scheduled form 1040. Nervous Market slips slightly new York Dpi stocks fell last week in a Market dominated by investors fears of commitment in sin Uncer Tain economic environment and buffeted by nervousness about computer driven program trading. The Dow Jones Industrial average ended a muddled week with a 13.09 Point toss Friday closing at i910.4g. For the week the Index slipped 47.74 Points. It really was a Dull week said Ches Ter Pado director of technical research at Jeff cries & co in los Angeles. He said downdrafts on monday and wednesday set the tone for the week. After that we were just treading water Pado said adding the Market was vulnerable to a correction after rallying Over be previous two weeks to an in Raday High of around 198s on the Daw. The Axis was at about 1920 any time it got above that it was overbought and whenever it moved below in was Over sold he continued. Broad Marvel indicators also slipped on the week. The new York Slock enchants composite Index Sank 2.78 to 141.35. Stan Dard & poor s 500-Stock Index lost 6.11 10 close the week at 250,96. Index of the generally smaller issues traded on the american Slock Exchange and Over the counter however posted Small gains for the week. Declining issues outpaced Miner 991 951 among 2,173 issues traded. Big Board volume totalled 960,615,280 shores com pared with 968,374,220 the previous week and 1,038.555,040 a year ago this Market has had the jitters and in continues to Banc the Kitten said Tom Gallagher a managing director with of . When anything bad comes out the Market goes Down and positive news does t help. The Market seems to be very concerned about everything the scars from the october collapse have not heated people just want to sit on their  late profit taking monday destroyed the Chance to extend gains scored in the previous two sessions and the Market closed mixed. The Dow industrials slipped 13.59 after having been ahead most of the session but advances out paced declines by a narrow margin. A Daylong struggle against negative economic news from Washington yielded an 8.29-Point Advance tuesday but there was Little Celebration Over a Long awaited Cut in the prime lending rate. Before the Market opened the govern ment said its main gauge of future ceo nomic activity the Index of leading indicators fell 0.2 percent in Decem Ber for the third straight monthly de Cline. The downturn followed revised de Clines of 1.2 percent in november which reflected the plunge in Stock prices and 0.1 percent in october. Shortly after the session began several of the nation s largest Banks announced cuts in their prime lending rates to 8.5 percent from 8.75 percent. Equity traders fascination with de Clining interest Rales was of Little Conse Quence wednesday As the Dow fell 28.35, hit hard by computer driven sell programs. Stuck prices closed mixed again on thursday in Dull trading As investors decided the prudent course was to sit Back and await further evidence about the state of the nation s economic health. The Dow lost i Point. The Market ended Pic week in a mixed session Friday after n wave of program Selling knocked the Dow industrials Down 13.09 Points at the Tail end of a Day of Iron Dloss trading marked by investors reluctance to commit themselves in an Uncertain economic environment sell programs kicked in about 20 min Ulics before the end of the session and in the Uncertain atmosphere that had prevailed throughout the Day there was Little resistance to the Selling. There does t seem to be any great conviction As far As the Short term is concerned Pado bid. There is no great incentive to sell because a lot of portfolio managers have reasonable amounts of Cash. There has t been any real positive economic news  general motors which went sex dividend on Friday was the most Active Lysbli cd Issue on the week off t h to 63 a. American electric Power followed off. Union Carbide was third up % to 21v,. Other Active Blue chit included at to Down 1ft to 28 i general elec tric Down 2vi to 42 to Eastman Kodak off 2ft to 40h, and Ford motor off 1 1040. Federated department stores gained 2v to s6. On Friday Federated rejected a s47-a-share bid by Campeau corp. Federated said it would consider Camp Cau s proposal to raise its bid to s61 a share if the bidder proves it can finance the Deal. American Standard gained 5vt to 63%. Black & Decker Friday sweetened in bid to acquire the company to $65 a share from $56. Black & Decker added. The american Stock Exchange Index climbed 1.01 to 27u.lt, while the National association of securities dealers Index of Over the counter stocks Rose 1. 1 1 to 345.77 on the week. On the amex advances outnumbered declines 417-375 among 1,014 issues traded. Macx volume totalled 56,532,480, shares compared with 45,768,320 traded a week earlier and 79,703,300 traded in the same week a year earlier. Echo Bay mines cd the amex actives. Off u to i to. Eastern to sell shuttle service to Texas air Miami up Eastern airlines said Friday it Wui sell its popular shuttle service to Parent company Texas air corp. Of Houston for 5225 million in Cash and. Notes a move that Drew Swift denunciations from several Union leaders. The shuttle division which provides service in the new York Washington and new Yorito Boston corridors is considered to be one of Eastern s More profitable operations. Probably the most profitable part of Eastern said , Stokes spokesman Tor the air line pilots association at Eastern. The pilots arc absolutely outraged. We will not let this go  Union leaders previously have criticized Texas air and a Ailam management for the Transfer of Eastern assets to the Parent company. Such transactions have Furt Kcf weakened Eastern Union leaders contend. Charles Bryan president of District 100 of the International association of machinists said the Sale is Crystal Clear evidence that Texas air chairman Frank Lorenzo s Mission is to dismantle Eastern Lii Sale of Eastern s shuttle which had been rumoured for several months follows the Transfer of other Eastern assets to Tafftt . Of Uncle from Page 19 Cryns crt0 Gerih in to of in tit Citi to dlt99 in a tie to n t.19 7u 01 771 to. 01 776 lib .01 ii it n i 111 it is Susi imm Tomt Bwll Sisir Cut is in i5its Inu h no Steli-.1l 1ifjo no of 1363 1ft. 1400 i h he ii ii hit 02 19 n i m si9 no 04 11 189 bit tit i 10 in ii10 .41 Ell 941 o,17111 n 01 in 111 01urn nil u Al z t .01 Tell i Ufa a sisal wet Stew Lei  am soph stews menu 7111 11 111 Levi of 131 a 01 of � m1119 it is h ubi 1 131soi ism u i Hihi 0 Hihi of dmrts3? us of Ulm Tofte 1141 ij44 Ditt ii n 03ill 94d a an ant ii Elmi. 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