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Example of Stock Split Adjustment

 
The scenario:
 
  • On 8/3/2012, John bought 50 shares of KO.
     
  • A "2 for 1" stock split occurred on 8/13/2012.
     
  • On 08/31/2012, he sold 100 "post-split" shares.
     
  • This caused a negative shares condition in TradeLog, as more shares were sold than were previously bought - For more information, please our topic on Negative shares.
 
TrNum
 Date
O/C
L/S
Ticker
  Shares
Price
    Comm
 Amount
1
8/3/2012
O
   L
KO
50
71.9
$8.95
($3,603.95)
2
8/31/2012
C
   L
KO
100
35.78
$8.50
$3569.50
Open Shares:     -50
 
To correct this, the "pre-split" opening transaction must be adjusted:
 
  • John now uses TradeLog to:

    - Select the opening transaction of KO bought on 8/3/2012
    - Clicks Edit, Adjust for Stock Split
    - Verifies the appropriate ticker (KO) and split ratio ("2" for "1")
    - Leaves the split date set at 8/3/2012, and clicks OK.
     
  • The "pre-split" transaction is adjusted accordingly:  the number of "pre-split" shares are doubled and the price is halved (see below).
 
TrNum
 Date
O/C
L/S
Ticker
  Shares
Price
    Comm
 Amount
1
8/3/2012
O
   L
KO
100
35.95
$8.95
($3,603.95)
1
8/31/2012
C
   L
KO
100
35.78
$8.50
$3,569.5
Open Shares:     0
 
The "negative shares" error has been resolved and the trades are matched correctly.