How to Add Stock Market IPO Subscription?

MTMS

Last month, I subscribed to an IPO of a apparel business in the stock market. I want to know the correct method/s to add the following relevant transactions regarding this.

- Transferring money to the IPO bank account

- What should I do when the requested no. of shares have been deposited to my stock market account?

- What should I do when I have received less shares than I requested?

Before replying, please consider that I'm not new to "Quicken Home & Business". In fact, I've been using it for nearly 8 years. But, This is the first time I got to record transactions regarding an investment.


Thanks in Advance!

Tom Young

1st, you create an Investment Account (Brokerage) in Quicken.  If you really do have an active account at the "bank" (the underwriter of the IPO?) and they allow for downloading into Quicken then set it up that way, otherwise set the Investment Account up as manual (non-downloading) Account; you can change that to a downloading Account later if needed.

2nd, transfer the money from your checking Account to this new Investment Account.

3rd, if you end up being allocated shares in the IPO you execute a Buy action in the Investment Account by entering the name of the security, the number of shares purchased, the per share purchase price, and any fees charged.  That will reduce the cash in the Investment Account.  If the purchase doesn't reduce the cash to $0 and it's now an active brokerage account you can leave the cash in that account for future use or initiate a transfer at the brokerage to send the money back to your checking account.  This will be recorded in the Quicken Investment Account as an XOut action, i.e., a "transfer."

q_lurker

I am going to assume you are working this through an existing brokerage account and that you want to be reasonably accurate financially. In that case, I would: 

• Create an Asset account to hold the escrowed funds. (I hope that is a reasonable use of escrow.)
• Transfer the subscription amount from the brokerage to the new account- XOut or Withdraw transaction. 
• When the IPO initiates, BuyX the bought number of shares, however many that is, with the funds coming from the new asset (escrow) account. 
• Any residual cash in that account gets returned to the brokerage account as cash (at least I hope it does). 

That would be my take on it.