ESR REIT - ARA LOGOS merger

[evankoh]

Hi there,

@jinhianlee

The transactions mark J91U as sold at 0.50712135 and 9A4U purchased at 5.07159044 for some reason. (I believe it should be 0.205 and 2.05 respectively?)

Why do you believe it should be 0.205 and 2.05?

Based on your transactions, the average buy price was 0.507… which you can confirm using this url → https://stocks.cafe/portfolio/transactions?label_ids=0%2C8883%2C13557%2C13559%2C13560%2C13561%2C10091%2C17551&filter=SGX%3AJ91U

Cheers,
Evan

[jinhianlee]

Ah thanks for explaining.

I thought it would be treated as sold / bought at the price of last trading day for the instrument.

What happens when using the avg buy price rather than the trading price is that any capital loss/gain is part of the new position but historical dividends are part of the old closed position. This makes lifetime PnL computation weird for the new position - you immediately have a capital gain/loss on the new position.

I prefer that the capital loss should be taken when closing the old position and will make the edits.

Either way, I guess there’s no way to understand the true consolidated PnL across the old and new tickers. Good to understand the thought process and system behaviour.

Thanks again.
Jin

[evankoh]

@jinhianlee

What happens when using the avg buy price rather than the trading price is that any capital loss/gain is part of the new position but historical dividends are part of the old closed position. This makes lifetime PnL computation weird for the new position - you immediately have a capital gain/loss on the new position.

Yes, you are right. So, it is between a choice of pushing the P&L to the new position or closing the P&L and start afresh with the new position. I chose pushing the P&L to the new position because the merger is not by choice (of user).

@jinhianlee

I prefer that the capital loss should be taken when closing the old position and will make the edits.

And yes, you can change it by changing the price.