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

Abstract

A computer-implemented method and apparatus for determining a cost basis associated with a plurality of shares of a security. In response to information identifying an 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 is retrieved from a database. One or more shares held adjustment ratios are then retrieved from a database. Each of the shares held adjustment ratios corresponds to one of the capital events that occurred in connection with the security between the purchase date and the sale date. A current cost basis associated with the security may then be determined in accordance with the one or more cost adjustment ratios and the purchase price per share of the security.

1 . A method for updating a database record comprising a cost basis datum associated with a first security identifier in the database record following an identification of a message representative of an occurrence of a capital event, the method comprising:
 retrieving, over a network, a beginning cost basis datum associated with the first security identifier from a database by a computer or the computer determining a beginning cost basis datum based on a purchase price datum associated with the first security identifier and a purchase date associated with the purchase price datum, wherein the first security identifier is associated with a purchase event datum including a date prior to the occurrence of the capital event identified in the message;   retrieving, over the network, a first shares held adjustment ratio from the database by the computer, wherein the first shares held adjustment ratio corresponds to the first security identifier and a date datum corresponding to a first capital event that occurred prior to the capital event;   determining a second cost basis datum by the computer, wherein the first shares held adjustment ratio is processed, via the computer, using the beginning cost basis datum;   correlating, via the computer, the second cost basis datum to the beginning cost basis datum via referencing a primary key stored in the database, wherein the primary key is associated with the first security identifier;   retrieving, over the network, a second shares held adjustment ratio from the database by the computer, wherein the second shares held adjustment ratio, based on the primary key, corresponds to a second security identifier and a date datum corresponding to a second capital event that occurred after the capital event;   determining the third cost basis datum via the computer, wherein the second shares held adjustment ratio is processed, via the computer, using the second cost basis datum, and   presenting a third cost basis datum on a display coupled to the computer, after correlating, via the computer, the third cost basis datum to the beginning cost basis datum and the second cost basis datum via referencing the primary key stored in the database, wherein the primary key is associated with the second security identifier, wherein the first shares held adjustment ratio is associated with a first event date datum that is represented to precede a second event date datum associated with the second shares held adjustment ratio and wherein the first shares held adjustment ratio is processed, via the computer, prior to the second shares held adjustment ratio.   
     
     
         2 . The method for updating a cost basis according to  claim 1 , further comprising presenting at least one of the second cost basis and at least one of the first shares held adjustment ratio and the second shares held adjustment ratio on the display. 
     
     
         3 . The method for updating a cost basis according to  claim 1 , further comprising storing the second cost basis on the database. 
     
     
         4 . The method for updating a cost basis according to  claim 1 , further comprising calculating at least one of a capital gain and a capital loss for the security based upon a difference between the second cost basis and the beginning cost basis. 
     
     
         5 . The method for updating a cost basis according to  claim 1 , wherein the beginning cost basis is determined by a purchase price, number of shares purchased, and purchase date for the security. 
     
     
         6 . The method for updating a cost basis according to  claim 5 , wherein at least one of the first shares held adjustment ratio or the second shares held adjustment ratio comprises a factor determined according to a type of capital event altering the number of shares associated with the beginning cost basis. 
     
     
         7 . The method for updating a cost basis according to  claim 1 , further comprising assigning an internal identification value to the security identifier in the database to track the security. 
     
     
         8 . The method for updating a cost basis according to  claim 7 , wherein the internal identification value correlates to at least one of a stock symbol and a Committee on Uniform Security Identification Procedures (CUSIP) number. 
     
     
         9 . A system for determining a cost basis datum associated with a first security identifier following a receipt of a message informative of at least one capital event, the system comprising:
 a microprocessor;   a display coupled to the microprocessor, the display displaying a graphical user interface showing a purchase date datum, a sale date datum, and an original purchased shares datum representative of an original number of purchased shares of a security associated with the first security identifier;   a database coupled to the microprocessor and storing information for retrieval via the microprocessor, wherein the information is representative of a purchase price per share of the security associated with the first security identifier corresponding to the purchase date datum, a plurality of capital events datums determined to have occurred between dates associated with the purchase date datum and the sale date datum, a plurality of shares held adjustment ratios, a first updated cost basis datum, and a first updated number of shares datum representative of a first updated number of shares of the security associated with the first security identifier, wherein each of the plurality of shares held adjustment ratios corresponding to one of the plurality of capital events datums,   wherein the microprocessor generating a first cost basis datum via combining the purchase price datum with the original purchased shares datum, wherein the microprocessor determining the first updated cost basis datum and the first updated number of the shares datum via a first shares held adjustment ratio processed via the microprocessor, using the original purchased shares datum, the microprocessor correlating the first shares held adjustment ratio to the first security identifier, wherein the microprocessor determining a second updated cost basis datum and a second updated number of the shares datum via a second shares held adjustment ratio processed via the microprocessor, using the first updated purchased shares datum, the microprocessor correlating the second shares held adjustment ratio to a second security identifier, wherein microprocessor correlates the second security identifier to the first security identifier using a primary key, wherein each of the microprocessor determines the chronological order of the plurality of capital events datums using the first security identifier, the second security identifier, and the primary key, and the microprocessor processes the plurality of capital events, that occur between the dates associated with the purchase date datum and the sale date datum, respectively, in a chronological order, such that a shares held adjustment ratio for a capital event datum that is represented to immediately precede another shares held adjustment ratio for another capital event datum, is processed, via the microprocessor, using a then current cost basis datum to calculate a next current cost basis datum, chronologically, until each of the shares held adjustment ratios is utilized, resulting in the determination of a final updated cost basis datum; and wherein the display displaying the final updated cost basis datum and a final updated number of shares datum.   
     
     
         10 . The system for determining a cost basis for a security according to  claim 9 , wherein the capital event comprises a transaction altering the number of shares associated with the first cost basis. 
     
     
         11 . The system for determining a cost basis for a security according to  claim 9 , wherein the microprocessor is further configured to generate information representative of a capital gain or loss associated with the final updated cost basis. 
     
     
         12 . The system for determining a cost basis for a security according to  claim 9 , wherein the microprocessor is further configured to assign an internal identification value to the security information stored in the database to track the security. 
     
     
         13 . The system for determining a cost basis for a security according to  claim 12 , wherein the internal identification value correlates to at least one of a stock symbol and a Committee on Uniform Security Identification Procedures (CUSIP) number. 
     
     
         14 . The method for updating a cost basis according to  claim 1 , further comprising transferring, via the computer, the third cost basis to a tax preparation software program; wherein the third cost basis is used by the tax preparation software to prepare a tax return. 
     
     
         15 . The method for updating a cost basis according to  claim 12 , further comprising transferring, via the computer, data relating to the determination of the third cost basis to a tax preparation software program. 
     
     
         16 . The method for updating a cost basis according to  claim 1 , further comprising calculating one or more additional cost bases by the computer, wherein one or more additional shares held adjustment ratios is processed, via the computer, using the one or more additional cost bases, respectively, in chronological order, such that the shares held adjustment ratio of the one or more shares held adjustment ratios that immediately precedes another shares held adjustment ratio of the one or more shares held adjustment ratios, chronologically, is processed, via the computer, using then current cost basis to calculate the next current cost basis, until all of the one or more shares held adjustment ratios is utilized, resulting in the calculation of a final cost basis. 
     
     
         17 . The method for updating a cost basis according to  claim 16 , further comprising transferring, via the computer, the final cost basis to a tax preparation software program; wherein the final cost basis is used by the tax preparation software to prepare a tax return. 
     
     
         18 . The method for updating a cost basis according to  claim 17 , further comprising transferring, by the computer, data relating to the determination of the final cost basis to the tax preparation software program. 
     
     
         19 . The method for updating a cost basis according to  claim 16 , further comprising determining a security from a plurality of securities to sell by updating the cost basis for the plurality of securities and determining a preferred result by selling one of the plurality of securities as compared to selling each of the other or the plurality of securities. 
     
     
         20 . A system comprising:
 a database comprising a first table, a second table, and a third table, wherein the first table stores a primary key and a security identifier corresponding to the primary key, wherein the second table stores a first capital event identifier related to the security identifier, a second capital event identifier related to the security identifier, a first shares held adjustment ratio corresponding to the first capital event identifier, and a second shares held adjustment ratio corresponding to the second capital event identifier, wherein the first shares held adjustment ratio corresponds to the first capital event identifier, wherein the second shares held adjustment ratio corresponds to the second capital event identifier, wherein the primary key is associated with the first capital event identifier and the second capital event identifier, wherein the third table stores price information corresponding to the security identifier, wherein the first table, the second table, and the third table are related to each other via the primary key;   a server computer coupled to the database, wherein the server computer is configured to:
 contemporaneously receive a first request from a first client computer over a network and a second request from a second client computer over the network, wherein the first request is associated with a first portfolio representation in the database, wherein the second request is associated with a second portfolio representation in the database, wherein the first portfolio representation comprises a first plurality of security identifiers, wherein the second portfolio comprises a second plurality of security identifiers, wherein the first request comprises a first set of information, wherein the second request comprises a second set of information, wherein each of the first set of information and the second set of information comprises a security symbol, a first number of shares datum associated with the security symbol, a price per share datum associated with the security symbol and to a first date, and a cost basis determination start date, 
 in response to a contemporaneous receipt of the first request from the first client computer over the network and the second request from the second client computer over the network, for each security identifier of the first security identifiers and the second security identifiers:
 identify the security identifier corresponding to the security symbol based on the primary key via communicating with the database, 
 determine, based on the primary key, a first cost basis datum based on the price per share datum associated with the first date, the cost basis determination start date datum, and the first number of shares datum, 
 identify the first capital event datum and the first shares held adjustment ratio which corresponds to the primary key based on the first identifier via communicating with the database, 
 determine, based on the primary key, a second cost basis datum and a second number of shares associated with the security identifier based on the first cost basis datum, the first capital event datum, and the first shares held adjustment ratio, 
 identify the second capital event datum and the second shares held adjustment ratio which corresponds to the primary key based on the second identifier via communicating with the database, 
 determine, based on the primary key, a third cost basis datum and a third number of shares associated with the security identifier based on the second cost basis datum, the second capital event datum, and the second shares held adjustment ratio, 
 
 in response to determining the third cost basis datum and the third number of shares datum for each security identifier of the first security identifiers and the second security identifiers, for each of the first portfolio representation and the second portfolio representation:
 send a first response over the network to the first client computer based on the first request and a second response over the network to the second client computer based on the second request, wherein the first response is associated with the first portfolio representation, wherein the second response is associated with the second portfolio representation, wherein the first response comprises the third cost basis datum and the third number of shares datum for each respective security identifier in the first portfolio representation such that the first client computer is able to display the third cost basis datum and the third number of shares datum for each respective security identifier in the first portfolio representation, wherein the second response comprises the third cost basis datum and the third number of shares datum for each respective security identifier in the second portfolio representation such that the second client computer is able to display the third cost basis datum and the third number of shares datum for each respective security in the second portfolio representation.