Why is a stock dividend converted to a stock split

Question

METCB  paid a Class B stock dividend on 06/29/2026:  .011977 of one share of Class B common stock for each share of Class B common stock held.  Unfortunately, Quicken downloaded the transaction as "remove" the shares I received.

In trying to correct/edit that erroneous transaction, I tried to change it to a "Div Stock Dividend (Non Cash)".  Instead, under "Action,"  the transaction was listed as a "StkSplit."  In the "Security" column, it is listed as a stock dividend, but the number of new shares was not accurate.  Basically, the stock was not split; rather new shares were added (see above where the first error was the "removal' of shares.)

Does this sound like a common error for Quicken?  On Monday I will double check how the brokerage addresses these transaction but clearly Quicken misinterpreted something.

Thoughts, anyone?  Thanks.

q_lurker · Answer

I agree with the approach presented by @Jim_Harman .  I would not expect any FI to download those specific transactions, especially the Sold shares.

Jim_Harman · Answer

Here is what I think your transactions should look like, assuming you started with 100 shares of METCB bought at the closing price on 6/1/26. The StkSplit was created by the stock dividend transaction and the Sold on 6/26 reduces the holding to 101 shares by selling the fractional share.

In my example, the cost basis of the holding is reduced by $2.28 and there is a realized loss of $0.02.

q_lurker · Answer

Why?  Because essentially a ‘stock dividend’ is a split.  You receive additional shares and your total cost basis does not change.  (Exceptions may exist.)

Next questions are what number of shares did you actually receive and did you receive any cash for fractional shares.  If you had 100 shares to start, you were due 1.197 additional shares.  You may have received the 1 share and some amount of cash in lieu of the 0.197 fractional share.

Why your FI downloaded a Remove transaction, I don’t know, unless it was an approach of removing the 100 and adding the 101.197.  That could be ok if the add has the right basis and acquisition date(s).  Usually the FI downloads for Add Shares lack that detail.