Practice Quiz

FINRA Series 6

Category - Series 6

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In 2004, your Uncle Oscar purchased 300 shares of Hasbro, Inc. for $19 a share. Uncle Oscar died earlier year and left his Hasbro stock to you. The stock was selling for $44 on the day he died, but by the time you learned that you were the beneficiary of the stock, the price was $47. What is your cost basis in Hasbro?
  1. $19
  2. $44
  3. $47
  4. $28
Explanation
Answer: B - Since Hasbro was selling for $44 on the day Uncle Oscar died, this is your cost basis. The cost basis of an inherited investment is the market value of the investment on the date that the person died.
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