Hi all, i was given a stock free by a family member and i’m wondering how it should be recorded as. If the ‘price paid’ field is recorded as 0, wouldn’t it mess up my overall pnl?
Hi there,
Yes, I think that is tricky but it will affect mostly those P&L% values.
If you already have that company’s stock, then it is not that bad. It will just average down.
If you do not have, then it might be a bit more tricky.
In the end, I believe it depends on yourself. Setting price as 0 is definitely possible or maybe you want to consider how much the family member paid for it.
Cheers,
Evan
You could enter it at the market price in order to keep the profit/loss/dividend % from being displayed as NA due to the divide by zero issue.
Conceptually it could be considered as an equivalent cash gift, which you decided to invest in shares…
Cash transactions > + gift sum
Buy transaction > shares
In the end you have to decide, but I think this method will ensure the portfolio performance is consistent and also reflects your portfolio management skills.
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