Bond spun off from a stock
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Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
It’s MUELLER INDS INC., symbol MLI, and the spin-off occurred 3/10/17 - a subordinated debenture. , 6%, maturing 3/01/2027. Please let me know if you need more info. Thanks so much!0
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Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
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OK, I see now. It’s not ‘return of capital’ at all and I should delete all those entries. I then need only 2 entries ago record this - the dividend entry and the bond purchase entry. Sounds straightforward, thank you very much.
It bothers me a little that after I do this and then want to check my investment performance the bond wouldn’t be reflected as resulting from the original stock purchase. It sounds like a report for my performance wouldn’t reflect the full return from this particular stock. The resulting bond would appear to be a stand-alone investment, right?0 -
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The "full return" from the stock is the $8 dividend. That $5 of that was then put into (or not immediately taken out from) the debenture was a separate investment decision you 'made'. That is paying you nominally 6% per year - not a bad rate at all these days (which means the market value for the debentures may be something very different from face value).Sam Kiel said:OK, I see now. It’s not ‘return of capital’ at all and I should delete all those entries. I then need only 2 entries ago record this - the dividend entry and the bond purchase entry. Sounds straightforward, thank you very much.
It bothers me a little that after I do this and then want to check my investment performance the bond wouldn’t be reflected as resulting from the original stock purchase. It sounds like a report for my performance wouldn’t reflect the full return from this particular stock. The resulting bond would appear to be a stand-alone investment, right?
If you like, you can use the Investment Performance report customized to those two specific securities, and get the average annual return for that combination. Choose a time span meaning for you, but preferably longer than 1 year.0 -
Thank you for your help!Sam Kiel said:OK, I see now. It’s not ‘return of capital’ at all and I should delete all those entries. I then need only 2 entries ago record this - the dividend entry and the bond purchase entry. Sounds straightforward, thank you very much.
It bothers me a little that after I do this and then want to check my investment performance the bond wouldn’t be reflected as resulting from the original stock purchase. It sounds like a report for my performance wouldn’t reflect the full return from this particular stock. The resulting bond would appear to be a stand-alone investment, right?0 -
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Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0
