Reverse Stock Split

Question

Hi. I'm new here.

How would I enter a reverse stock split in Quicken Windows? On my statement from brokerage, it shows my BIOS stock had a Reverse stock split and I was given cash in lieu of the 1 share. I can't figure out how to handle the transaction in Quicken.

I did click on "Stock Split" as the type of transaction in Quicken as it indicates that it is used for "Stock Splits" and "Reverse Stock Splits", but I can't figure out how to enter my transaction correctly.

Thank you!

NotACPA · Answer

Do I understand correctly, that you had 1 share of BIOS and it did a 4 to 1 reverse split in February 2020?If that is your situation, then I agree with @bmciance's reply.If that's NOT your situation (i.e., you previously had more than 1 share), you need to explain your situation further.

Sherlock · Answer

You use two transactions.  The first is for actual split ratio.   In the Stock Split wizard you would enter 1 for New Shares and 4 for Old Shares.  The second transaction is for the cash in lieu.  In the Sell - Shares Sold wizard, the fractional shares are sold for the cash received.  You may choose the lot.

Note: You also should reset the ticker symbol to OPCH and uncheck Matched with online security on the Edit Security Details window to allow the CUSIP ID to be reset: press Ctrl + Y, right-click on the BIOS security, and select Edit.

bmciance · Answer

Hi, Based on what you said, it sounds like you had one share and because of that you were paid for that share rather than getting "new" shares (because you would end up having less than 1 share with the reverse split).  In that case it is really just a sale of the 1 share for the proceeds that you received.