Re: OOP basis (end)

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In Reply to: Re: OOP basis (end) posted by J. Reece on February 06, 2006 at 20:03:19:

: : Reinvested distributions are not received by you. They were paid out, but then reinvested into the fund or stock. In this example, you have paid out of pocket $13,139.63, and CAG is now only worth $12,626.31, thus a loss of $513.32.

: : $13,139.63 - 512.32 = 12,626.31

: : Reinvested distributions do not affect your "out of pocket" cost, as they didn't change how much money has come out of your pocket. On the other hand, "Distributed" distributions do affect your out of pocket cost, as they will reduce the amount of money that has come out of your pocket.

: : Thanks,

: : Mark

: : --

: : Mark Beiley

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

: :

: Mark,

: You are correct on the typo.

: So, in summary, I have lost $512.32 in the value of the stock. Plus all the value of the reinvested dividends? Since the final value is less than I originally invested, and I have reinvested all the dividends.

: Maybe I am not using the correct columns in the report. I would like to see my total investments I have actually paid, no/no reinvested dividends, in one column.

: Thanks

Hi Jamie,

To see your total out of pocket cost you would use the OOP basis (end) field. The "Out Of Pocket" cost is just that, how much money has come out of your pocket to obtain the currently owned shares. Reinvestments do not affect your OOP cost, as no money came back to you, nor did any more come out of your pocket.

In this example, you are down a total of $512.32. The reinvested distributions are included in the ending value, since they were reinvested for more shares.

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

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