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!
Sorry for the slow reply. I somehow missed it
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.
Basically, is what you did.
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.