Stock Split results in too many shares of stock (2019 closed discussion)

DRMick

Windows 11, Q 65.17

Schwab downloaded a 2:1 Stock Split for ETF XLU that had 24.27 shares before the split. Q downloaded two transactions from Schwab but entered three.. Q entered the 2:1 split, then did another transaction to ADD 24 more shares. And another transaction for Cash in Lieu of fractional shares. Now the account mismatch in Q reports 72.54 shares, while Schwab reports 48.27. So I deleted the ADD 24 transaction. Now the mismatch is Schwab 48,27, Q 48.54. I found a closed discussion in Community about this problem in 2019. What is wrong with this Stock Split operation? Is it broke again?

miklk

Quicken handled it correctly. The problem is the broker sent transactions that messed it up.

The 2 for 1 stock split is the correct transaction.

The add transaction should just be deleted because the split already took care of the added shares.

The cash in lieu is correct as that it what usually happens when you have fractional shares. However, what I do is enter it in Quicken as a sell shares instead of the cash received transaction they send.

The broker transactions just don't always line up with the way Quicken needs the info to be presented.

The 2 for 1 split you got was all correct. The the split gave you double shares but the broker give cash in lieu instead of the fractional extra. 27 share which is normal.

DRMick

I thought Q software was supposed to adapt to the downloaded transaction, but I guess not. I tried deleting the Add transaction first, but I still had a mismatch. So i had to reentered the ADD and deleted the Stk-Split transaction and got rid of the mismatch. I fixed my immediate problem but I lost confidence in Q to make it right.

Tim Johnson

I had the exact same problem with this split in my Schwab account. I think Quicken should reach out to Schwab and request them to at least reconsider not sending the superfluous add shares transaction.

DRMick

In my case the ADD transaction is what fixed the problem. Q software's Stock Split routine just doubled the shares, including the fractional shares. Schwab had 2 transactions, Q downloaded 2 from Schawb, then added a 3rd transaction that screwed the results up. Q needs to fix their software.

q_lurker

Q needs to fix their software.

I respectfully disagree. Per State Street, this is a straightforward 2-for-1 split. That is the way Quicken's third party data supplier showed and sent it to Quicken to get downloaded with the quotes. How fractional shares get handled in such a split can vary by company (State Street) and financial institution.

Schwab's handling of this as a 24 share Add and a Cash in lieu payment is indicative of only distributing the whole shares (24) you were owed and selling the fractional 0.47 share you were owed.

Chances are the 24 shares added by Schwab have $0 basis. That is incorrect.

Chances are you will get a 1099 B report in January showing 0.47 shares sold with proceeds equal to the cash-in-lieu amount received and some basis applied to the transactions.

Those amount to supporting the Quicken 2-for-1 stock split and you needing to record the cash in lieu payment as coming from a sale of the 0.47 shares.

I never expect the transactions sent by the FI to be what I need for my Quicken. Further, I don’t expect Quicken to alter the information sent by the FI. The program is not in a position to judge the accuracy or adequacy of the information sent by the FI. Adaptation of the data is my responsibility.

DRMick

I agree with you in part. Since Q uses Intuit for data download probably means they they have to take what they get. I agree I am responsible for my own data's accuracy, The fact that I choose to use Schwab as a broker is my choice and I am very well satisfied with their service.. State Street appears to be a Schwab competitor.

The Basis doesn't matter in this case since the security is in an Roth IRA account

Ok, so even though there were only 2 transactions downloaded from Schwab and Q created another one, I found that share balance was easily fixable by deleting that Q Stock Split transaction.

But I can't because Q reminds me a Stock Split is missing every time I run OSU. So I found if I make New shares and old shares the same, it is a good Work Around. Q thinks it is good and my share balance is correct again.

q_lurker

Or delete the 2 Schwab downloads, keep the 2:1 split, and sell the 0.47 shares for the cash-in-lieu.

Same transactions are applicable inside and outside of a retirement account.

If you are satisfied with what you have, carry on.