basis means: An investor’s price for security, plus out-of-pocket costs. This is the amount that an investor pays for a security. It can also be used to calculate capital gains and losses when the stock has been sold. It also includes the difference in price between cash and futures prices. (in Stock Market Dictionary)
What else does basis mean?
- The foundation on which everything rests. (in Merlin Dictionary)
- It is the main constituent, or fundamental ingredient. (in Merlin Dictionary)
- A underlying condition or circumstance: synonym : Base . (in Merlin Dictionary)
- A plan or pattern for moving forward. (in Merlin Dictionary)
- Condition for proceeding or relating. (in Merlin Dictionary)
- N. The original asset cost to be used for capital gains tax. The “adjusted base” refers to improvements, costs, and damages that occur between the initial basis price being established and the transfer of the asset. A “Stepped-up basis” is when the original value of an asset, especially real estate, will be increased to the current value at death. This allows capital gains taxes to be kept down if the deceased person sells the asset. Ex. Daniel Oldboy purchases a house at 30,000 and it is valued at 250,000 when he passes away. The son, along with his heir, can purchase the house for 250,000 without capital gains tax. However, if Dad sold the house before his death, there would be capital gains of 220,000. This simple example is not the only one. Assets jointly owned with spouses, property exchanges, and many other complications require professional help. (in Legal Dictionary)