Bug in P&L for stock splits with same before and after symbols?

Q&A
1

There seems to be a bug in computation of P&L% when a stock undergoes a split, and it has the same symbol after the split. Please help.

2

It is a known issue. Unfortunately, I do not have accurate stock split data hence automating this is hard.

You would have to fix this manually => How should I handle stock splits?

3

Thank you for the prompt reply. I’ll take a look.

4

So I did what was suggested, i.e. sell off the number of shares at $0 such that the final number of shares I will have is the number after the reverse split.

But the P&L% is still not correct. This time, it seems to be using the APrice to compute the P&L, instead of the Value. And since the APrice after the reverse split will be quite different from when I first bought the shares, the P&L% is is also quite inflated. Please advise.

5

Hi,

I am sorry. I realized what I previously suggested would not work well for reverse stock split.

I have updated it => How should I handle stock splits?

Can you try again?

Thanks,
Evan

6

Hi Evan, thank you for the suggestion. I tried what you suggested. It does not seem to work as the average price, which seems to be used for computing P&L, is incorrect.

Instead, I tried entering $0 for both the sell and buy price per share, and entered the sell total cost to be $10 and buy total cost to be $20 after the split.

To be honest, I’m not sure if mathematically this is correct, since I’m not sure what’s the formula used to compute the P&L. But it seems more correct.

In general, I derived the formula: Ave Price After Reverse Split = Reverse Split Factor x Reverse Split Factor x Ave Price at Beginning.

Please advise.

7

Hi,

I have created a testuser with transactions => https://stocks.cafe/user/profile?username=testuser2

Can you see if that would work better for you?

Thanks,
Evan

8

Thank you. Yes, that works better. Earlier, I had put the sell and buy dates to be on the same date for the split. Following your example, I have put the sell date before the buy date, which is the split date.

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