Mr Cooper Group Inc (COOP)

[clawmann]

Here is a simplified example (the prices I use are just to illustrate; I don't know whether they correspond with actual prices on the specified date, but it does not matter one way or the other. The same with the conversion ratio.).

Assume that in Feb 2010 I buy 500 shares of WAMU @ 10 cents a share ($50 total). Then in Jan 2012, I buy 500 more shares @ 1 cent a share ($5 total).

In March 2012 I receive 100 shares of WMIH for my 1000 shares of WAMU.

50 of my WMIH shares have a purchase date of Feb 2010 and a total basis of $50 ($1/share).

The other 50 WMIH shares have a purchase date of Jan 2012, and a total basis of $5 (10 cents a share).

There is no capital gain or loss until I sell the WMIH shares. And when I do, FIFO applies (unless I specifically direct my broker otherwise), so the shares I bought first will be the ones I sell first.