A Google search for "freeport-mcmoran" quickly turned up
There's a lot of news about the Phelps Dodge acquisition there, but what you need is on the Investor Relations link, then Shareholders FAQs
. This has a description of the transaction that is complete enough for your use in recording it in Quicken. The effective date is reported as March 19, 2007, not March 21.
Many corporate acquisitions are structured as mergers and are carefully
tailored to qualify under the tax rules as "tax-free" transactions.
Actually, they are only "tax-deferred", because the shareholder's old basis
carries over so that any gain is simply deferred until such time as the new
shares are sold. Quicken 2007 provides for recording such as a transaction
as a "Corporate Acquisition (stock for stock)". But that does not fit the
FCX acquisition of PD.
The FAQ says specifically, under "What are the tax consequences for former
Phelps Dodge stockholders?", that "The receipt of the merger consideration
for holders of Phelps Dodge common shares pursuant to the transaction will
be a taxable transaction for U.S. federal income tax purposes." This means
that you will report the transaction as the SALE of your PD stock on
3/19/07, just as if you had received ALL cash for it. And you will report
your receipt of FCX shares as if you had paid cash for them on 3/19/07. The
company is reporting the value of the FCX shares you received as $61.59 per
share, or .67 * $61.59 = $41.2653 for each share of PD you sold. This value
plus the $88 cash = $129.2653 is the selling price for each share of your PD
So you will Enter the transaction as a simple "Sell - Shares Sold". Report
the sale on 3/19/07 of all your PD shares at $129.2653 per share (rounding
as appropriate), just as if you had sold them all for that much cash,
recognizing long-term or short-term capital gain or loss, depending on your
holding period and basis in the PD shares. Then Enter a "Buy - Shares
Bought" transaction on the same date, reporting the purchase of your new FCX
shares at $61.59 per share.
If you were entitled to a fractional share of FCX, you would receive cash
for that fraction at $60.71 per share, and you would report that small sale,
too. In other words, if you held only 1 share of PD, you should receive
$128.68 ($88 + .67 * $60.71) cash - and no FCX stock - for it; you would
simply report that sale for cash.
I've been retired for more than a decade, Edward, and tax rules change
daily, so be sure to check with your own CPA to be sure of the proper
reporting on your tax return.