Liberty Media split of two tracking stocks
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Liberty Media split of two tracking stocks Our club owned 100 shares of Liberty (L), it split itself off into two tracking stocks. We now have 5 shares of LCAPA and 25 shares of LINTA. How do I change this in our portfolio. Thanks, Jane Jane,
This is a transaction where one company splits up into two
companies. That's not quite accurate, because, legally, it stays as one entity,
but on the stock market its value is shown as two 'tracking' companies. The best
way to handle this in the software is to spin off one company, and then merge
the original company with the 'unspunoff' company.
I would suggest that you spin off LCAPA first. Go to
Accounting|Investments|Spinoff. Ticker for the investment will be L. Spin off
Ticker will be LCAPA. Date will be 5/11/06. Number of shares will be 5. Enter
56.1708 for the remaining basis percentage.
Click OK.
Now, you need to record the merger of L into LINTA. Goto
Accounting|Investments|Merger. Ticker for the Investment will be L. Acquiring
ticket will be LINTA. Date will be 5/12/06. Shares will be 25. Click on OK, and
you should be done.
When you are through there should be 5 shares of
LCAPA, 25 shares of LINTA, and no shares of L.
Rip West Saint Paul, MN Rip, Thank you so very much. This worked like a charm. Thanks again. Jane |
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