nav[aria-label="Primary Navigation"] { padding: 0; & ul { list-style: none; width: 100%; display: flex; flex-direction: row; justify-content: start; align-items: start; gap: 30px; padding: 0; & li { margin: 0; } & ul li { list-style: none; } } }

Return of Capital

T. Sor

I am trying to enter a return of capital transaction. Shouldn't this reduce my market value since capital is just being returned? If I enter the transaction, my market value remains too high but my cost is reduced. This should be different from Return on capital, correct?

Find more posts tagged with

Comments

T. Sor

Shouldn't this lower your market value as you have less shares?

q_lurker

Shouldn't this reduce my market value since capital is just being returned?
Shouldn't this lower your market value as you have less shares?

No.

Your second question raises a flag. In the US, the a return of capital transaction does not reduce shares. Canadian policies may be different but I don't see any indication you are a Canadian user/investor.

Quicken's approach for US investors is consistent with US procedures. It would be reasonable to expect the market value to go down, but this is going to be reflected in the daily market price quotes through the time period of the RtrnCap. The same also applies to dividend payments. If investors remain confident in the future value of the company, the price/share tends not not drop. Of course this also depends on the magnitude of the RtrnCap (or dividend) amount.

[Deleted User]

@t.sor - RoC is a return of your initial investment in a security which reduces your cost basis only. Shares are not affected.