How to handle a stock merger or exchange?

Recently it appears Vanguard funds have changed some symbols on some of their funds I track in the Quicken portfolio. I believe that this is either an "exchange" or a merger to a different asset class( Investor shares to Admiral shares). How do I handle this in the Quicken portfolio transactions?

Best Answer

Answers

  • till
    till Member ✭✭
    I should have mentioned that I download transactions from my brokerage into Quicken using WebConnect. Will this make the conversions automatically? I actually haven't yet downloaded any yet from the time period where Vanguard made the change, but I am getting a pop up box that asks me to "Match Security" of the new symbol to an old one. Do I just do that instead?
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    It's more than a little unlikely that Vanguard will download this properly.  Use the Conversion Wizard, and then see what's downloaded.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Vanguard will probably download transactions to make the conversion, but they will probably not be correct.

    If you are not using the Average Cost method to compute capital gains as described above, you will be better off entering the Mutual Fund Conversion manually and not accepting any Added or Removed transactions related to this fund. The Mutual Fund Conversion will create the new Admiral security for you and you should match to that when asked.

    Back up your data file before entering the conversion, in case something goes wrong.
    QWin Premier subscription
  • till
    till Member ✭✭
    Since I have used the AVG Cost method, based on the above I should enter the transactions using the Corporate Acquistion box. That box asks for "Company Acquired" and "Acquiring company. Which is which? for example the old symbol was VTSMX and the new symbol is VTSAX. I appreciate your help in this.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited September 2019
    The company acquired is the Investor shares (VTSMX), the acquiring company is the Admiral (VTSAX).

    Make sure all transactions including any reinvested dividends prior to the change have been downloaded before doing the acquisition so the share count is correct before you start.


    QWin Premier subscription
This discussion has been closed.