# How do I record a stock split?

When a security splits, you're given additional shares. When you record the stock split, Quicken recalculates your average cost per share.

• Splits
The issuance of more stock to shareholders. Companies use various formulas to determine how much stock each shareholder should get, such as 2-for-1 or 3-for-2. If you own 100 shares of the stock YUP, valued at \$20 per share, a 2-for-1 split means you will have 200 shares valued at \$10 a share. In each case your stake is worth \$2,000. Although a stock split does not increase a stock's price per se, it is generally regarded as a positive move. In many cases the stock has just enjoyed a run-up, and the company decides to split the stock in anticipation of further gains. Many companies like their stocks to trade in the \$20- to \$45-a-share range, which is affordable to a larger number of investors than higher priced stocks might be.,

In order not to change previously recorded transactions, Quicken doesn't automatically recalculate the price of the new shares. If you want to correct the market value, manually enter the new price.

If this is a reverse split, for example, 1-for-2, you would end up with fewer shares rather than more, and each share would have a higher ending price. For example: For a 1-for-2 reverse stock split, enter 1 in the New Shares field and 2 in the Old Shares field.

• Reverse Split
A reduction in the number of shares of stock. The opposite of a stock split, a reverse split means that shareholders will hold fewer shares, although the value of their investment remains the same. Companies use various formulas to determine how much stock each shareholder should have, such as 1-for-2 or 1-for-5. If you own 100 shares of the stock YUP, valued at \$5 per share, a 1-for-2 split means you will have 50 shares valued at \$10 a share. In each case your stake is worth \$500. Companies often announce reverse stock splits to make their stock more attractive to institutional investors. Some funds have prohibitions against buying stocks that are priced too low, which are considered very speculative. Stock prices often sag for some time after the announcement of a reverse split.

1. Open the account you want to use.

2. Click Enter Transactions.

3. In the Enter Transaction list, select Stock Split.