How to record stock dividend?

[cbenenax]

Sorry if this is covered some place already, but I can find it in neither the forum nor the help.

One of my holdings spun off a new company and paid a dividend in shares of stock in the new company -- 1 share of the new for every 4 held in the old. What is the correct way to record a stock divided?

The letter announcing the divided stated that it was likely to be a tax-free event. In this case I would think it was more like a stock split, except that the new shares are in a new company. If this is the case, is there a different way to record the event?

[Mark]

Hi cbenenax,

Since you are getting shares in a new company, instead of more shares in the original company, you would use the "Spin-off Wizard" to record this. Right mouse click on the original investment, and choose "Investment Data / Spin-Off..." and fill out that dialog. You will need to know how much of the cost basis transfers from the original parent to the new child.