How To Enter 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.
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.
- In the Account Bar list, select the account you want to use.
- Click Enter Transactions.
- In the Enter Transaction list, select Stock Split.
- Use this dialog to record the split.
- Transaction dateEnter the date on which the split occurred.
- Security name and AccountOne of these fields will be prefilled, depending on the location from which you accessed the Stock Split dialog.
- New shares and Old sharesEnter the ratio of new shares to old. For example, if the stock split is 2-for-1, enter 2 in the New Shares field and 1 in the Old Shares field.
- Price after splitEnter the new post-split stock price in the Price After Split field. In a 2-for-1 split, your number of shares would be doubled, but the price per share would be reduced by half. The market value of your total holdings of this security would be unchanged.
- Transaction date
Note: For a 1-for-2 reverse stock split, enter 1 in the New Shares field and 2 in the Old Shares field.