Computer-implemented method and apparatus for adjusting the cost basis of a security

A system for determining a cost basis associated with a plurality of shares of a security, comprising:

• a computer system with a user interface that receives information identifying an issuer associated with the security, a purchase date of the security, a number of shares of the security purchased on the purchase date, and a sale date of the security;
• a database coupled to the computer system, wherein the database stores a purchase price per share of the security on the purchase date;
• a medium storing instructions, wherein the instructions when executed by the computer cause the computer system to perform the following method steps:
• retrieving from the database, in response to the information identifying the issuer, the purchase date and the sale date, a list of capital events that occurred in connection with the security between the purchase date and the sale date, wherein the list of capital events includes at least one event selected from the group consisting of a reinvested dividend event, a stock spin-off event, a stock merger event and a stock split event, and wherein the database stores past price per share information and capital events for a plurality of different securities associated with different issuers;
• retrieving from the database multiple cost basis adjustment ratios, wherein each of the cost basis adjustment ratios corresponds to one of the capital events that occurred in connection with the security between the purchase date and the sale date;
• determining a current cost basis associated with the security by applying each of the cost basis adjustment ratios to the purchase price per share of the security, including:
• assigning an intermediate cost basis equal to the current cost basis;
• adjusting the current cost basis by applying a further cost basis adjustment ratio to the intermediate cost basis;
• and
• repeating the steps of assigning an intermediate cost basis equal to the current cost basis and adjusting the current cost basis until each further cost basis adjustment ratio retrieved from the database has been used to adjust the current cost basis, wherein each further cost basis adjustment ratio retrieved from the database has an event date associated therewith and is applied in a chronological order such that a cost basis adjustment ratio associated with a latest event date is applied in a final iteration of the step of adjusting the current cost basis.