Entering oxy warrants

RCLSr

any tips

Frankx

Hi @RCLSr,

You can track warrants in Quicken and luckily, you won't need to do it manually.  Those warrants have a ticker (it is OXY.WS on the NYSE) and that's the symbol you should use to set it up in Quicken - but the symbol actually used by Quicken is OXY' . 

Let us know if you have any followups.

Frankx
[edited for typos]

Tom Young

Oxy will be reporting the distribution of warrants to you as a form of dividend so the first thing to do is to enter a dividend in the amount of ((# of OXY shares)/8 x $4.95).  That $4.95 is the average of the price of the warrants on the NYSE on 8/4/2020, so you can use that date as the dividend date.

Fractional warrants were not issued to you so that (# of OXY shares) / 8 might not equal the actual number of warrants you received, but use that number anyway because OXY plans to sell the "unissued" warrants on the open market and distribute the cash back to shareholders in proportion to the fractional warrants they should have received.

Next, use the cash the "dividend" put into the Account to buy (# of OXY shares) / 8 warrants at $4.95 per warrant.  That will get rid of the phantom cash.

If you sell the warrants before they expire, then simply enter a SOLD transaction in the normal fashion, recognizing any short term profit or loss.  If you were due to receive fractional shares then those shares will remain in the Account until OXY distributes to you the cash raised by their sale.  You'll enter the amount received, if any, as another SOLD transaction, eliminating the remaining fractional shares in the Account.

If you end up exercising the warrants they "sell" the warrants at a price of $4.95 each - no gain or loss - combine that "cash" with the cash you needed to provide to exercise the warrants, and buy your new OXY shares with the combined amount.

tommymac501

I am having a similar issue with OXY warrants. I don't understand them to begin with, but I was awarded 5 warrant shares, but Quicken recorded the transaction as 500 shares. When I try and change it back to 5, ot throws off the account balances. When I look at my account in Quicken Simplifi, they show the transaction as 5 shares? Any ideas?

Tom Young

If you used the "Bought" action then Quicken should have used exactly the number of units you entered.  It sounds to me like you entered 500 x (Per warrant price/100) in order to get the dollars to come out correctly.  If you change that entry to "5" then you have to multiply the price you originally used by 100 to get 5 x Per warrant price to match your original entry.

tommymac501

@Tom Young , Quicken downloaded the transaction from TD Ameritrade on my behalf, I just accepted it. I will try adjusting it per your answer and see if that works, thanks!

Tom Young

"Quicken downloaded the transaction from TD Ameritrade on my behalf, I just accepted it."

In the same vein as your answer, understand that Quicken too just "accepts" what it's fed from TD Ameritrade, or any other Financial Institution.  Quicken has no way of knowing if the entry it's been fed is correct or not.  Also, it's not uncommon that Financial Institutions send erroneous information, or entries that are not correct "accounting" entries.  Apparently TD Ameritrade initially treated each warrant as an exchange-traded option; exchange-traded options usually represent 100 shares of the underlying stock and these options are quoted on a "per share" basis. 

questionsforever

it seems the symbol for the warrants is OXY' with the apostrophe.