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Reverse stock split with new stock in lieu of cash

Bruce on Molokai

We had 915 shares which had a 1 for 5 reverse stock split. The result was 183 shares of old stock and 183 shares of new stock. How do I enter that in Quicken?

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q_lurker

I suspect the reverse split got entered creating 183 old shares (with the correct basis) and an Add Shares of 183 new shares was downloaded / entered (without the correct basis). If so, I would delete the new shares transaction. It may then be necessary to make sure the new shares (new CUSIP) correctly matches to the old security version.

NotACPA

@Bruce on Molokai something's off with the math. A 1 for 5 reverse-split, starting with 915 shares, should have ended up with 183 shares TOTAL … not 183 old and 183 new.

Double-check what you've input.

Quicken Kristina

Hello @Bruce on Molokai,

Thank you for reaching out! According to our article on stock splits, you would follow this process:

If this is a reverse split, for example, 1-for-2, you would end up with fewer shares rather than more, and each share would have a higher ending price. For example: For a 1-for-2 reverse stock split, enter 1 in the New Shares field and 2 in the Old Shares field.

Open the account you want to use.
Click Enter Transactions.
In the Enter Transaction list, select Stock Split.
Use this dialog to record the split. Click a link below for more information.
- Transaction date Enter the date on which the split occurred.
- Security name and Account One of these fields will be prefilled, depending on the location from which you accessed the Stock Split dialog.
- New shares and Old shares Enter the ratio of new shares to old. For example, if the stock split is 2-for-1, enter 2 in the New Shares field and 1 in the Old Shares field.
- Price after split Enter the new post-split stock price in the Price After Split field. In a 2-for-1 split, your number of shares would be doubled, but the price per share would be reduced by half. The market value of your total holdings of this security would be unchanged.

I hope this helps!