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Price plus distribution graph and stock split

Questions on using, creating, or understanding data in Fund Manager graphs.

Postby elliots » Mon Nov 22, 2010 8:03 am

The stock had a 2:1 split (correctly entered in the data file) and this graph did not adjust -- is that what you intended? It does show an "x" on the date of the split, but the price drops 50%. It would appear to me that the pre-split values should be reduced to make the data continuous -- could that be an option (turned on/off the "historical cost" in the graph options menu and it does not appear to make any difference) ?
elliots
 
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Postby Mark » Mon Nov 22, 2010 8:14 am

Hi elliots,

If you turn on "View / Split Adjusted", the graph should be continuous, and not drop by 50% (if everything is recorded properly). You would want to have a split transaction recorded, and the pricing should be recorded as it actually happened on every day. For example:

A stock was at a price of $100 on day 1, and on day 2 it split 2:1 with a closing price of $50. You should have a price of $100 recorded for day 1, the split recorded for day 2, and a price of $50 recorded for day 2.

If you are looking at pricing in the Data Register, please keep in mind that the state of "View / Split Adjusted" affects the display of pricing in here as well, so to see the actual recorded prices, turn off "View / Split Adjusted".

The rule on recording pricing and transactions is that you record everything as it happened on that date. Recording the splits will take care of any adjusting that needs to be done.
Thanks,
Mark
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