Re: stock splits and cash in lieu

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In Reply to: Re: stock splits and cash in lieu posted by Mark on March 15, 1999 at 07:29:00:

: : Schwab offers automatic reinvestment of dividends but
: : when a stock splits, they do will only apply the split
: : to whole shares, providing cash-in-lieu for left over
: : partial shares. Needless to say, I need to correct for
: : the number of shares or Fund Manager has me owning too
: : many. Is the cash-in-lieu a sale of partial shares or
: : a dividend? I also have to relearn what to do whenever
: : there is a spin-off. This might be an area, with examples
: : that you would build into your help section in FM 4.
: : Thanks.

: Neil,
: You can record your split, and then you would
: want to record a redemption for the appropriate
: number of shares. This is not a distribution,
: as you are lowering the number of shares you own.
: Thanks for the feedback on spin-offs. You can
: read about them on our web site at:

: http://www.fundmanagersoftware.com/spin.html

: Thanks,
: Mark
: --
: Mark Beiley
:
: Fund Manager for Windows 3.1x/95/98/NT
:
:

I have been correcting stock splits on uneven shares such as the AT&T example by doing redemptions. The problem with that is the "make believe" redemptions show up on my capital gain/loss report at the end of the year. Is there any other way of handling splits that end up with partial shares which in real life you end up with "Cash-In-Lieu"?

Gerald

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