Qty adj up from TD Ameritrade

John Kleczewski on

Hello,
    Does anyone know how I should enter several qty adj up
    entries on my TD Ameritrade statement?

For example:
MO/Altria group inc qty adj up from 60.57850 qty = .0005
to give a new total of 60.5790 at $0.00 cost.

Should this get entered as a reinvestment of $0.00 for the
.0005 shares?

  Thanks.

   John

Rip West on

John,

MO/Altria group inc qty adj up from 60.57850 qty = .0005 to give a new total of 60.5790 at $0.00 cost.

Should this get entered as a reinvestment of $0.00 for the .0005 shares?
>>

No. The problem with doing that is that you will end up with a block with no cost. Better to record a stock split with a ratio of 60.579 for 60.5785. Note, that some adjustments will leave you with less shares. Makes no difference if you define the ratio as the Ending Shares [60.5790] for the Beginning Shares [60.5785]. This will spread the cost adjustment through all blocks.

Rip West
Saint Paul, MN

Rob Nagler on

John Kleczewski writes:
> Should this get entered as a reinvestment of $0.00 for the
> .0005 shares?

Something is very odd with TD Ameritrade right now. There are many of
these transactions coming in through AccountSync, and we are looking
into the problem.

AccountSync will "do the right thing" once we figure out what exactly
that is. :-)

Cheers,
Rob

Rip West on

Rob,

I believe the problem is that TD Waterhouse carried the securities to 4 decimal places, and TD Ameritrade only carries them to 3. I believe TD Ameritrade is converting to three places, without any cash going in or out of the portfolio. Some stocks win, when they round up, and some lose, when they round down. As I said, I think using the stock split function will adjust all the blocks appropriately.

Rip West
Saint Paul, MN

Rob Nagler on

On 5/11/07, Rip West <ripwest@comcast.net> wrote:
> I believe the problem is that TD Waterhouse carried the securities to 4
> decimal places, and TD Ameritrade only carries them to 3. I believe TD
> Ameritrade is converting to three places, without any cash going in or out
> of the portfolio. Some stocks win, when they round up, and some lose, when
> they round down. As I said, I think using the stock split function will
> adjust all the blocks appropriately.

Thanks for the root cause analysis. It looked like old TD Waterhouse accounts.

I agree that the split is the way to go. I'm sure Paul will agree, too. :-)

Yet another reason why I hate DRPs. :-(

Thanks,
Rob

John Kleczewski on

Rip West wrote:
> Rob,
> �
> I believe the problem is that TD Waterhouse carried the
> securities to 4 decimal places, and TD Ameritrade only carries them to 3. I
> believe TD Ameritrade is converting to three places, without any cash going in
> or out of the portfolio. Some stocks win, when they round up, and some lose,
> when they round down. As I said, I think using the stock split function will
> adjust all the blocks appropriately.
> �
> Rip West
> Saint Paul, MN
> �

Thanks Rip,
Your stock split plan worked out great!

John

Gene Rooks on

Rip, the way TDA treated our fractions, in every case they rounded up,
giving an additional .001 if necessary. For instance, JNJ we showed
64.540099. They rounded up to 64.541 even though it was only .000099 of
ahare. We had six fractional stocks. Three would normally have rounded
up, three down, but all were rounded up. Now, what I can't figure is how
come they gave us an extra .14 cents. Since they aren't breaking it out
by security, (thank goodness), would it work best to just enter it as Other
Income? Gene

Rip West on

Gene,

Most of the inquiries that I've received didn't have any cash involved. It's hard to figure how they could round up on all shares, pay out money, and still come out. Could you send me, privately, a snagit view or pdf scan of your broker statement?

For 14 cents, I would use other income, but I would really like to understand what is going on here.

Rip West
Saint Paul, MN

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