Reverse stock split with new stock in lieu of cash

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.

1. Open the account you want to use.
2. Click Enter Transactions.
3. In the Enter Transaction list, select Stock Split.
4. 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!