Re: Handling stock splits

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In Reply to: Re: Handling stock splits posted by Brian Millard on January 21, 2004 at 07:06:19:

: : I entered a 2 for 1 stock split on the investment data screen, but the cost basis in the stock is not adjusted and the gain/loss is incorrectly stated on the capital gains report. Am I not entering enough information? Do I have to make manual adjustments to the cost basis of the stock?

: I didn't explain my problem very clearly. I had 50 shares of stock that I purchased at 37.00. The company split 2 for 1, so now I have 100 shares. I originally entered the transaction for the 50 shares at the 37.00. I sold 55 of the shares recently and recorded that transaction. Now my investment reports show that I have -5 shares. Where should I have entered the 50 shares that I received in the split? They were not really a purchase, but should they be recorded as one? Thanks.

Hi Brian,

You'll just want to record a "split" transaction. When you record a 2 for 1
split on a date after the 50 share purchase, you will then own 100 shares.
If you then later sell the 55 shares, you'll end up with the proper 45 shares.
To record the split, just right mouse click on the investment's graph and
choose "Split..." from the popup menu. You can view all your recorded splits
by using "Edit/All Data..." and selecting the "Splits" data type.

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP

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