It appears that GE's reverse stock split occurred on 8/2. In
Bivio accounting, the reverse split resulted in our club now
being with credited with ownership of a fractional share. In
our brokerage account, however, we do not have a fractional
share and GE paid out cash instead of allocating fractional
shares. So it appears that our Bivio accounting has to be
corrected to remove the fractional share and that the cash
payout needs to be identified in some way. How should we
proceed to correct our accounting?
Thanks in advance for your help!
Laurie Frederiksen on
This was a 1/8 reverse stock split. The shares started trading at their split adjusted price on 8/2 so that is the date it needs to be recorded.
You will be receiving cash in lieu of any fractional shares you were owed. It usually takes a few days for it to come through.
When it does, you'll record it as the proceeds of a sale of the fractional shares.
Once everything is recorded make sure to double check that the cost basis of each lot of GE you own shown on the bivio "Investment Lot Cost Basis" report agrees with what your broker shows on an "Unrealized gain/loss" report you can get from them.
Laurie Frederiksen Invest with your friends! www.bivio.com
It appears that GE's reverse stock split occurred on 8/2. In
Bivio accounting, the reverse split resulted in our club now
being with credited with ownership of a fractional share. In
our brokerage account, however, we do not have a fractional
share and GE paid out cash instead of allocating fractional
shares. So it appears that our Bivio accounting has to be
corrected to remove the fractional share and that the cash
payout needs to be identified in some way. How should we
proceed to correct our accounting?
Thanks in advance for your help!
LEONARD DELMOLINO on
Thanks for the quick response, Laurie!
We've already received the cash for the fractional shares as an "Unassigned Credit".
It sounds like we should proceed as follows -
Delete the "Unassigned Credit"
Record the cash from the fractional share as a sale of stock
Once this is done, I assume the valuation report as well as other reports in Bivio will reflect that we longer own a fractional share.
Finally compare what's in Bivio's "Investment Lot Cost Basis" report with what's in our broker's Unrealized Gain/Loss report to make sure they match.
Does this sound right? Is there anything else to consider?
Len Delmolino Massachusetts High Flyers Investment Club
On 08/03/2021 1:36 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
This was a 1/8 reverse stock split. The shares started trading at their split adjusted price on 8/2 so that is the date it needs to be recorded.
You will be receiving cash in lieu of any fractional shares you were owed. It usually takes a few days for it to come through.
When it does, you'll record it as the proceeds of a sale of the fractional shares.
Once everything is recorded make sure to double check that the cost basis of each lot of GE you own shown on the bivio "Investment Lot Cost Basis" report agrees with what your broker shows on an "Unrealized gain/loss" report you can get from them.
Laurie Frederiksen Invest with your friends! www.bivio.com
It appears that GE's reverse stock split occurred on 8/2. In
Bivio accounting, the reverse split resulted in our club now
being with credited with ownership of a fractional share. In
our brokerage account, however, we do not have a fractional
share and GE paid out cash instead of allocating fractional
shares. So it appears that our Bivio accounting has to be
corrected to remove the fractional share and that the cash
payout needs to be identified in some way. How should we
proceed to correct our accounting?
Thanks in advance for your help!
Laurie Frederiksen on
That sounds good.
Laurie Frederiksen Invest with your friends! www.bivio.com
We've already received the cash for the fractional shares as an "Unassigned Credit".
It sounds like we should proceed as follows -
Delete the "Unassigned Credit"
Record the cash from the fractional share as a sale of stock
Once this is done, I assume the valuation report as well as other reports in Bivio will reflect that we longer own a fractional share.
Finally compare what's in Bivio's "Investment Lot Cost Basis" report with what's in our broker's Unrealized Gain/Loss report to make sure they match.
Does this sound right? Is there anything else to consider?
Len Delmolino Massachusetts High Flyers Investment Club
On 08/03/2021 1:36 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
This was a 1/8 reverse stock split. The shares started trading at their split adjusted price on 8/2 so that is the date it needs to be recorded.
You will be receiving cash in lieu of any fractional shares you were owed. It usually takes a few days for it to come through.
When it does, you'll record it as the proceeds of a sale of the fractional shares.
Once everything is recorded make sure to double check that the cost basis of each lot of GE you own shown on the bivio "Investment Lot Cost Basis" report agrees with what your broker shows on an "Unrealized gain/loss" report you can get from them.
Laurie Frederiksen Invest with your friends! www.bivio.com
It appears that GE's reverse stock split occurred on 8/2. In
Bivio accounting, the reverse split resulted in our club now
being with credited with ownership of a fractional share. In
our brokerage account, however, we do not have a fractional
share and GE paid out cash instead of allocating fractional
shares. So it appears that our Bivio accounting has to be
corrected to remove the fractional share and that the cash
payout needs to be identified in some way. How should we
proceed to correct our accounting?
Thanks in advance for your help!
LEONARD DELMOLINO on
Thanks Laurie, we appreciate your prompt response!
Len Delmolino Massachusetts High Flyers Investment Club
On 08/03/2021 4:21 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
That sounds good.
Laurie Frederiksen Invest with your friends! www.bivio.com
We've already received the cash for the fractional shares as an "Unassigned Credit".
It sounds like we should proceed as follows -
Delete the "Unassigned Credit"
Record the cash from the fractional share as a sale of stock
Once this is done, I assume the valuation report as well as other reports in Bivio will reflect that we longer own a fractional share.
Finally compare what's in Bivio's "Investment Lot Cost Basis" report with what's in our broker's Unrealized Gain/Loss report to make sure they match.
Does this sound right? Is there anything else to consider?
Len Delmolino Massachusetts High Flyers Investment Club
On 08/03/2021 1:36 PM Laurie Frederiksen <
laurie@bivio.biz> wrote:
This was a 1/8 reverse stock split. The shares started trading at their split adjusted price on 8/2 so that is the date it needs to be recorded.
You will be receiving cash in lieu of any fractional shares you were owed. It usually takes a few days for it to come through.
When it does, you'll record it as the proceeds of a sale of the fractional shares.
Once everything is recorded make sure to double check that the cost basis of each lot of GE you own shown on the bivio "Investment Lot Cost Basis" report agrees with what your broker shows on an "Unrealized gain/loss" report you can get from them.
Laurie Frederiksen Invest with your friends! www.bivio.com
It appears that GE's reverse stock split occurred on 8/2. In
Bivio accounting, the reverse split resulted in our club now
being with credited with ownership of a fractional share. In
our brokerage account, however, we do not have a fractional
share and GE paid out cash instead of allocating fractional
shares. So it appears that our Bivio accounting has to be
corrected to remove the fractional share and that the cash
payout needs to be identified in some way. How should we
proceed to correct our accounting?