How to add rewarded share ?

[monkey88]

I dont know how to add rewarded share in FM , help me please

[Mark]

Hi monkey88,

By 'rewarded share' I believe you mean what is sometimes called "bonus shares"? This is where you receive extra shares for free, based on the current number of shares you own. To record this, simply record a split transaction with a ratio of <new_shares> for <old_shares>. For example, if you previously owned 100 shares, and received 10 bonus shares, record a 110 for 100 split.

[monkey88]

So great , thank you very much

[SteveK]

Hi Mark,

I recorded a split as advised for all the bonus shares i received. However, i noticed that the split ignores the date entered, and records the date in which the shares were acquired. for example, for bonus shares received on the 13.06 the recording of the split updates the new balance from 11.10.2010. Is there an issue here ?

rgds,

Steve

[Mark]

Hi Steve,

Did you record the split for the date you received the new shares? Where exactly are you looking that you see a "new balance" from 11.10.2010?

What may be happening is that when you record a split, and if you have "View / Split Adjusted" turned on, all share balances prior to the split date are shown in split adjusted terms, but so are prices, so the actual value stays the same. For example, if you had owned 100 shares at a price of $10 before a 2:1 split, and if you look at the balance on that date prior to the split with "View / Split Adjusted" turned on, you would see you own 200 shares at a price of $5.

When dealing with recording transactions and splits the rule is that you record everything as it happened on the transaction date.

[SteveK]

Hi Mark,

thanks for the answer. I had "View / Split Adjusted" turned on. Turning this off shows the split correctly recorded on the date the bonus shares were received, and not backdated to the date the particular security was acquired.

Steve