How to handle stock splits for same symbol before and after

Q&A
1

Hello! I purchased a stock for 4000 shares in 1 Aug 2017. The stock split 1 to 4 shares on 18 May 2018. To account for the stock split, do I simply add the following transaction?

  • Buy 12,000 shares at $0 on 18 May 2018

The P&L looks funny after I did the above though. Sorry, still kinda confused after reading the FAQ for Stock Split

Any advice is greatly appreciated! Thanks!

2

Hi,

Sorry for the slow reply. I somehow missed it :frowning:

First, I am sorry that StocksCafe cannot handle this automatically at this point yet. Definitely something that I want to make it more seamless in handling stock split.

At this point, I think there are two ways to handle this.

  1. Basically, is what you did.

  2. What I would personally do. Use this -> https://stocks.cafe/personal/portfolio/transactions/tosplit?label_id=4983 (You need to change the label_id to the portfolio that have this stock)
    What it does is the following:
    a) It will create a sell transaction to close the position on 17 May 2018 at the buy price so that your previous position P&L is 0.
    b) It will also create a buy transaction with 4 times the original shares and set the price so that your total price is the same as the original total price.

Hope this helps.
Evan

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