SIE - Securities Industry Essentials Exam
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Your client just inherited some shares of DEF common stock. What is your client's cost basis?
The exact cost basis of the deceased person
A
The cost basis of the deceased person minus estate tax
B
The fair market value of the shares on the date of the original owner's purchase
C
The fair market value of the shares on the date of the death
D
Explanations
The cost basis for inherited stock is the fair market value on the date of the original owners death.