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Fractionnal split question

Questions about updating prices or transactions in Fund Manager

Postby MichelV » Fri May 08, 2020 6:59 am

Hi,

One of my position got a 1:20 split resulting in 163.25 shares. Since the fractional was less then .50 the issuer rounded it to 163 shares without changing the cost. I cannot figure out how to make the proper correction. I've tried many "Distribution" types, Tx Out, Sell. Nothing seems to give the proper result.

- If I leave the position has is, the market value will always be off by 0.25 x price, making month-end reconciliation more complicated

- If I "Adjust" -0.25 shares the Tax basis value decreases while this is not true. The "Price cannot be $0" seems to be part of the problem

Note that I'm using AVG cost

Thanks.
MichelV
 
Posts: 18
Joined: Wed Feb 19, 2020 2:17 pm
Location: Canada

Postby Mark » Fri May 08, 2020 7:49 am

Hi MichelV,

Instead of recording a 1:20 split, what really happened was a ratio slightly different than that. Record what happened, which it sounds like was a 163:3265 split. This is a ratio of <new shares> for <old shares>.

Usually when there is a fractional share involved, you get paid cash for that fractional share. If this happens, it would be a 1:20 split, plus a sell of the 0.25 fractional share. It sounds like that may not be the case for you in this situation though.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11252
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby MichelV » Fri May 08, 2020 8:14 am

Hi Mark,

Worked as expected. Never looked at it from this angle.

Many thanks.
MichelV
 
Posts: 18
Joined: Wed Feb 19, 2020 2:17 pm
Location: Canada


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