Re: Split of whole shares but not fractional

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In Reply to: Re: Split of whole shares but not fractional posted by Mark on November 06, 2005 at 12:09:57:

: : How can FM handle splits when the split only includes the integer amounts. Eg. 67.6153 shares before the split. The split was two for one but does not include the fractional shares. The split resulted in 134.6153 but FM appears to split the fraction. How do I adjust for this? Thanks.

: : David

:
: Hi David,

: Did you receive some cash for payment of partial shares? If you started with 67.6 and ended up with 134.6 shares, this isn't a 2:1 split, unless you received payment for partial shares. This is pretty common. In this case, you would record a 2:1 split, and then a sell of the fractional shares. For example:

: Start Shares: 67.6
: 2:1 Split
: You own 135.2 shares
: Sell of partial shares, 0.6 shares
: End Shares: 134.6

: Thanks,
: Mark
: --
: Mark Beiley
: Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003
:

I spoke to the broker. They split the shares including the fractional amounts which left two equal amounts (2for1) including the fraction. But they cannot deposit fractional shares back into the account so the sold one half of the fractional amount. Clear as mud. That is how I will record it in FM.

Thanks, Mark

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