Re: Managing Cash in Lieu for Reception of Partial Shares

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Posted by Mark on January 10, 2007 at 09:42:47:

In Reply to: Managing Cash in Lieu for Reception of Partial Shares posted by SS on January 09, 2007 at 22:25:10:

: Mark,

: I'm not sure how to input the following scenario into FM 8:

: On 7.1.05, Flowers Foods did a 3:2 dividend stock split. In this case, 225 shares became 337.5 shares, and so 0.5 shares was received as a cash in lieu credit.

: Currently, when I attempt to record the stock split, I'm not noticing a way to record the split into 337 shares with a cash in lieu dividend for the 0.5 share...the transaction gets recorded as the incurment of 337.5 shares.

: Can you please advice how to accurately record this transaction?

: Thank you for any assistance.

Hi SS,

There is no special transaction type for these partial shares. You can record it as a 2:1 split, and also a sell of 0.5 shares.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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