Archive for Sunday, October 23, 2005

The Motley Fool

October 23, 2005


Name that company

I was founded in 1910 by a Nebraska teenager who moved to Kansas City, Mo., with some shoeboxes full of postcards. I got my current name in 1925, and my familiar slogan was introduced in 1944. I produced my first Valentine in 1913, and today I offer nearly 1,500 different Valentine's Day cards. My 54-year-old dramatic television series has won more Emmy awards than any other program. I'm one of America's most admired companies, with 18,000 employees. My brands include Crayola and Silly Putty. I rake in more than $4 billion annually, and I'm privately held. Who am I?

Last week's question and answer

Not long after the Wright brothers took flight in 1903, my founder turned a shipyard into an airplane factory. Business stalled after World War I, so for a while I made furniture and boats. You may have heard of my B-52s or my Stratoliners, or you may have flown on one of my 707s, 727s, 747s or even my Air Force One. I've also made subway cars and wind turbines, among other things. Since 1996, I've merged with or bought part of Rockwell International and Hughes Electronics and merged with McDonnell Douglas. I moved my headquarters from Seattle to Chicago in 2001. Who am I? (Answer: Boeing)

The basis of stock splits

How do I figure my cost basis when my stock splits 2-for-1? - K.D., Bay City, Mich.

It's easier than you may think. Your basis splits 2-for-1 along with the stock. Imagine that you bought 100 shares of Home Surgery Kits (ticker: OUCHHH) for $50 each, paying a $12 commission. Your cost basis is $5,012 - or $50.12 per share. After the split, you have 200 shares and your basis is still $5,012, or $25.06 per share. Learn more at and


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