Removed shares transaction shows wrong investment amount

jaguaroh

When I remove shares from an account, the associated dollar amount is not correct. It is not using that day's share price or any adjacent day's. The same goes for the corresponding add in the destination account. Both dollar amounts and share amounts are the same, but I don't know where the incorrect dollar amount comes from. If I look at those same transactions in the Investment Performance report (irr) the dollar amount is correct for both. It uses the correct price/share for that day in the report. I'd like to know why the registers' amount is different.

Sherlock

I suspect you may be confused by the amount shown in the Inv. Amt column.  If so, this is the Amount invested in those shares of the security on that date.  If you haven't already, you may want to review: https://help.quicken.com/display/WIN/Tell+me+about+key+investment+performance+calculations+used+in+Quicken

jaguaroh

So the "Inv Amt" amount is not necessarily the number of shares removed times the price on that date? I've attached a screen shot of the IRR report and the register showing with the numbers circled. The price/share on 12/20/07 was 43.24/share. Is the register correct or at least not wrong? I read the article you provided, but I'm not sure I understand the Inv Amt section.

jaguaroh

I read the article again regarding Amt Inv. Part of it says:
"Amount invested... It does not include reinvested amounts, such as reinvested dividends, interest, or capital gains distributions." It sounds like as dividends are reinvested, the shares increase in number while the invested amount remains the same. That would cause the $cost/share to decrease over time. That would explain the reduced price/share in the register when the shares were removed. Am I understanding?

Sherlock

jaguaroh said:

So the "Inv Amt" amount is not necessarily the number of shares removed times the price on that date? I've attached a screen shot of the IRR report and the register showing with the numbers circled. The price/share on 12/20/07 was 43.24/share. Is the register correct or at least not wrong? I read the article you provided, but I'm not sure I understand the Inv Amt section.

Correct.  The amount invested is not the number of shares removed times the price on that date.

You have not provided enough information to determine whether the register is correct or at least not wrong.  To verify the Amount Invested, you would need to provide a complete history of all transactions involving the security.

In the simplest case, when you first purchase a holding in security, the Amount Invested is equal to the Cost Basis.

Sherlock

jaguaroh said:

I read the article again regarding Amt Inv. Part of it says:
"Amount invested... It does not include reinvested amounts, such as reinvested dividends, interest, or capital gains distributions." It sounds like as dividends are reinvested, the shares increase in number while the invested amount remains the same. That would cause the $cost/share to decrease over time. That would explain the reduced price/share in the register when the shares were removed. Am I understanding?

Yes.  I think you are beginning understand but it's not really$cost/share or price/share.  It's amount invested/share that is reduced with the increase in the number of reinvested shares because the amount invested did not change.

Note: If you record the dividend reinvestment as a Div and Bought instead of a ReinvDiv, the amount invested does increase.

jaguaroh

Thanks guy. Now there's one more thing I know about Quicken. It's interesting stuff.