A Spin-Off is a new company formed by splitting from a larger one. Brokers vary widely as to the way in which they report spinoffs on their statements. It is impossible to automate the importing of these transactions in TradeMax, so manual adjustment is required by the user to account for the new stock.
Make the necessary adjustment as follows:
- Select the records to Spinoff
- Right-click on the record and select the Trade Spinoff from the context menu
- A dialog box will pop up:
Select the transaction type.
There are the following option from its dropdown list :
Stock Split/Reverse Split –– A corporate action in which a companys existing shares are divided into multiple shares.
Stock Spin off –– A spin-off is a new company formed by splitting from a larger one. Brokers’methods vary widely on how they report spinoffs in their statements.
Stock Merge –– The combination of two or more corporations into one..
|2.Transaction Date||The actual date you spinoff the security to another|
|3.Account||Choose the specific account name from the accounts list. If you choose <All Account> from the dropdown list, event will apply to all accounts|
|4.Old Security Name||
The name of security before the specific event. Enter the old security name manually in the Old Security Name field or Select it from the Symbol dropdown list.
|5.Old Security Quantity||
Number of shares before the specific event.
|6.New Security Name||
The name of the security after the specific event. Enter the new security name manually in the New Security Name field or Select it from the Symbol dropdown list.
|7.New Security Quantity||
Number of shares after the specific event.
|8.New shares Issued||
The split ratio is automatically calculated by New Security Quantity/Old Security Quantity.
|9.Cost Per Old Share||
Enter the cost per share of the old security,on the date of the spin-off.
|8.Cost Per New Share||
Enter the cost per share of the new security which was spin off, on the date of the spin-off.
After checking all the information you have entered, click the OK button to continue the process or click the CANCEL button to cancel the appending process.
4. After you have clicked the OK button, the following new record will be displayed:
The row outlined in red displays the New Spinoff trade record.