Worldwide Equity Cost Basis

This service has been designed to enable users to track both a security’s cost basis & its evolution and all its descendant’s cost basis & evolution up to the current date. Therefore, this service includes all events that affect cost basis and number of units, e.g. De-merger, Distribution, etc.

**Why would someone be interested in using this product?**

Cost basis is the key to calculate capital gains on an investment for tax purposes and knowing their cost basis is an essential step in the capital gains calculation.

The service supplies all the necessary information to track cost basis irrespective of the various tax methodologies. It is up to the user to decide which tax methodology to apply and calculate accordingly.

With this service you can track the Security Evolution, Security Cost Basis and Tax Status. This service can serve as a foundation for capital gains calculations in any jurisdiction.

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The difference between the cost basis of a security and its sale price is liable for CGT (Capital Gains Tax). Therefore, it is important to track a security’s cost basis over time, hence the need for this service.

For example, 1000 ABC shares were bought for $1000 making the cost basis $1000 on the day of purchase. Sometime later ABC did a distribution (spin-off) of XYZ to its shareholders and the allocations were computed to be 60% (ABC) and 40% (XYZ). After the distribution the cost basis of ABC was $600 (60% of $1000) and XYZ was $400 (40% of $1000). Therefore, when XYZ was subsequently sold for $700 the amount liable for CGT was $300 ($700 - $400).

WSE would disseminate the above allocations (ABC: 60% and XYZ: 40%) in two records, one for ABC and the other for XYZ. Each record identifies both the original security as ABC and the distributed (spun-off) security as ABC and XYZ respectively.