Morgan Stanley (MA) merger with E*Trade (ETFC)

Morgan Stanley completed its merger with E*Trade on 10/2/2020 for Morgan Stanley stock.

The SEC filing for this merger can be found at this URL:*TRADE+Financial+Corporation&formType=DEFM14A&formDescription=Definitive+proxy+statement+relating+to+merger+or+acquisition&dateFiled=2020-06-12&CK=1015780

The companies state in the SEC filings this merger will be a non-taxable reorganization. We will assume they are successful and will treat this merger as a simple merger. The information below is based on the information available from a form DEFM14A dated 6/12/2020 filed with the SEC by E*Trade. The URL above links to this document. Price information is from websites offering historical prices.

NOTE:The companies state they plan to satisfy the conditions necessary to make this transaction non-taxable. However, there is the possibility the IRS will disagree with their characterization. These instructions assume the companies succeed in their efforts. New instructions will be written, if and when it becomes known the merger should be treated as a taxable event.

The Merger Entry Go to Transactions > Merger or Accounting > Securities > Record merger of securities depending on the version of the software being used. If you are unfamiliar with merger transactions you can get help at this URL:

Here is the information needed for E*Trade shareholders to complete the merger.

  • Date: 10/2/2020
  • Old Security or Merging Company: E*Trade (ETFC)
  • Price per share of old Security / : Use last ETFC valuation, if needed
  • Cash received: See your broker statement for cash-in-lieu
  • New Security: Morgan Stanley (MA)
  • New Security Price: 338.83 (Closing price on 10/2/2020)
  • Shares received : 1.0432 x (# of ETFC shares owned).
    • (Remember to include fractional shares.)
    • For example, if you owned 100 ETFC shares, you should receive 1.0432 x 100 = 104.32 MA shares.

Save the transaction and the merger has been entered.