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Example of Stock Split Adjustment
The scenario:
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On 10/04/2005, John bought 500 shares of AMCC.
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A "2 for 1" stock split occurred on 10/15/2005.
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On 11/02/2005, he sold 1000 "post-split" shares.
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This caused a negative shares condition in TradeLog, as more shares were sold than were previously bought.
|
Tr
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Date
|
O/C
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L/S
|
Ticker
|
Shares
|
Price
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Comm
|
Amount
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58
|
10/4/2005
|
O
|
L
|
AMCC
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500
|
200.5
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$14.95
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($100,264.95)
|
|
58
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11/2/2005
|
C
|
L
|
AMCC
|
1000
|
102.25
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$14.95
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$102,235.05
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Open Shares: -500
To correct this, the "pre-split" opening transaction must be adjusted:
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John finds and selects the opening transaction, clicks Edit, Adjust for Stock Split, enters the appropriate ticker (AMCC), split ratio ("2" for "1") and leaves the split date set at 10/4/2005) and clicks OK.
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The "pre-split" transaction is adjusted accordingly: the number of "pre-split" shares are doubled and the price is halved (see below).
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Tr
|
Date
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O/C
|
L/S
|
Ticker
|
Shares
|
Price
|
Comm
|
Amount
|
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58
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10/4/2005
|
O
|
L
|
AMCC
|
1000
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100.25
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$14.95
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($43,767.95)
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|
58
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11/2/2005
|
C
|
L
|
AMCC
|
1000
|
102.25
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$14.95
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$102,235.05
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Open Shares: 0
The "negative shares" error has been resolved and the trades are matched correctly.
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