How to enter Reverse stock split - GE 1:8 with resulting fractional shares.

euripides
euripides Member ✭✭
edited October 21 in Investing (Windows)
Handle a reverse stock split

Best Answer

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @euripides,

    I guess you are referring to the GE transaction.  Below is how to enter that in Quicken.

    Let me know if you have any followups.

    Frankx

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @euripides,

    I guess you are referring to the GE transaction.  Below is how to enter that in Quicken.

    Let me know if you have any followups.

    Frankx

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • euripides
    euripides Member ✭✭
    The ever-changing mysterious pulldown list! :) Thanks!
  • TigerJoe
    TigerJoe Member ✭✭
    I entered the reverse stock split just fine...but the final number of shares is not correct.
    I received "cash in lieu" for the fractional shares. is there a best practice on how to record the "cash in lieu" and update the number of shares?
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    You should sell the partial share to produce the Cash in Lieu.
    QWin Premier subscription
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    TigerJoe said:
    I entered the reverse stock split just fine...but the final number of shares is not correct.
    I received "cash in lieu" for the fractional shares. is there a best practice on how to record the "cash in lieu" and update the number of shares?
    To expand on Jim's answer, the "best practice" is to fully execute the stock split as a Quicken transaction.  In this case as a reverse split, if you started with 20 shares, the 1-for-8 split would produce 2.5 shares.  You then sell the fractional share (0.5 in my example) for the cash-in-lieu amount received.  That "best practice" applies for any such split - regular or reverse - where fractional shares might be generated. 

    Do NOT rely on brokerage downloads which may only report the full shares received.