A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi ET, Such a dividend does justify making changes inside your AIM account. Your #3 would need no Portfolio Control action.

If we had a $15 stock that gave out a tax free dividend of another stock issue and we decided to AIM them separately, we should remove the value of the dividend shares from the initial AIM account. Let's assume the new issue comes out at $5 and the old issue is reduced in share value to $10 post-dividend. We'd want to reduce the PC value by 1/3 to get the trade range back in sync with reality.

The new issue could be set up using the $5/share value as a starting point or some possible average cost value.

Best regards, Tom