Does QMac automatically recalculate shares after entering a stock split transaction?

mathewsmg

Yesterday I was informed of a 40 to 1 stock split for a stock in my portfolio. I then entered this split as a "stock split" transaction in the portfolio register. I expected QMac to then automatically re-calculate the number of shares (by a factor of 40) and this to be reflected in the Dashboard and Portfolio. Note: the adjusted share price was already downloaded to the account so that was in place. QMac did not adjust the number of shares based on the split so the Dashboard and Portfolio showed pre-split shares with a post-split share price. This resulted in a dramatically reduced (and inaccurate) value of
this stock holding. Question: should not QMac automatically adjust the number of shares based on the "stock split" entry in the account register? Seems illogical and a shortfall in QMac's functionalities. Please advise. Otherwise I've been and remain very pleased with QMac's performance.

John_in_NC

I suspect the issue is a a Placeholder transx (at the beginning of your register) simply doing its job. Think of them as "opening balance" adjustment transactions. They are in light gray, and are either Add or Remove shares types.

When you downloaded the transx from your broker, it reported that you had X shares at that point. You later entered your stock split transx increasing the share balance, but the Placeholders immediately updated to force you to still have the X shares reported, but now with the lower price.

I personally would just wait a day or two for the brokerage house to report/download the newer increased share balance and the Placeholder will switch back so you have the correct amount.

mathewsmg

For John in NC: thank you for your response. Someone (maybe you) had posted almost the exact same words previously as I had read them two days ago. Good advice. I should note that yesterday morning, I downloaded my brokerage's updates which included an "add shares" transaction bringing the share count to the correct amount. So now the share count and share price are accurate hence the value of the holding is correct. Disclaimer: I'm not a CPA nor software engineer so what follows is one lay person's comment: if the "split shares" transaction doesn't actually split the shares then what is its purpose? Second issue: another poster commented that by adding shares at no cost (as the brokerage posting does) it presents a false picture to QMac with regards to cost basis calculations. Personally, I would rely on my brokerage for such calculations but the point is nonetheless interesting and worthy of QMac's attention. Bottom line: my specific issue is resolved but my curiosity lingers on.

John_in_NC

Howdy, mathewsmg:

I am neither a CPA or software engineer myself, so consider ourselves in the same boat-fellow user trying to help others.

When the few stock splits I have had did occur, I just let the downloaded transaction thing do their thing. And the results were correct for those accounts (And you can add the cost to "Add Shares" transactions to get the cost basis correct-but you might not need to. I have had to do that on other things such as fund conversions.) 

Now, other more advanced investing users chime in, but I don't know if you even need to manually enter your stock split transaction-the download should take care of it via "Add Shares." The "Stock Split" transaction is likely more for people who manually enter everything (as I do in certain accounts.)