Two companies merge

msenfdonna
msenfdonna Quicken Windows 2017 Member
edited January 2022 in Registers & Transactions (Windows)
I invest in in a company that has just been merged with another company. The description shows .8185:1 mandatory exchange. The quantity changed fro 618 to 505 shares. I am not sure which transaction to use to enter this transaction. Any ideas?

Answers

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    It's always best to disclose the names of the actual companies involved.  That way you have the best chance of getting help that applies to the specific merger you're involved in. 
    The .8185:1 ration is, almost certainly, the correct figures to use and, most likely, you actually were to have received 505.833 shares of then new company but the .833 shares were, instead and in effect, purchased from you in a Cash in Lieu (CIL) transaction.  Although the majority of pure "stock-for-stock" transactions are tax free, that's not always the case.
    Names of the companies?

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