Re: Stock Distribution

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In Reply to: Stock Distribution posted by Chris � on August 04, 2005 at 21:25:04:

: Hi Mark,

: I tried to do a "search" on stock distribution, and came up "nil".

: I need to account for the DIAL / VIAD distribution of 2/22/1996.

: 100 shares of DL, resulted in 100 "New" Dial, and 100 Viad.

: The new basis was set at 49.08% for the DIAL and 50.92% for the VIAD.

: Thus:
: Orig Purchase of 100 Shares @ $30.00 = $3,000 of DIAL becomes
: Distribution of 100 Shares @ $14.724 = $1,472.40 of new Dial
: Distribution of 100 Shares @ $15.276 = $1,527.60 of Viad

: What would be the correct work around in FM? Would I need to create a new file for the "new Dial"?

: Thank you in advance for clearing this up. I'll need to apply this to some other distributions. Maybe I should have forst checked the FAQ.... we'll dio that now. If it's in there..... Never mind !

: -= Chris � =-

Hello Chris,

You can use the new "Spinoff" transaction for this. Essentially this will record 2 transactions:

A "Return of Capital" distribution in Dial, and a new purchase of Viad.

From within the Dial investment, right mouse click on it, and choose "Investment Data / Spinoff...". It will help, by showing you your existing cost basis, so you can easily figure out the cost basis for your new Viad shares (50.92% of the pre-spinoff Dial cost basis).

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

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