I have some confusion on stock splits and how net software handles splits. Since software that follow portfolios automatically adjusts for splits, it also changes what was the original cost of the stocks. If I bought 50 shares of a stock at $38.75, the cost (sans commission) is $1,278. That's what I paid. Now it split 3 for 2 and and I have 75 shares. When the software shows what the difference is, it takes the split price times 75 to say I paid $1,362 to figure out the loss or gain using the current price. That is totally different from a basic spread sheet. I didn't pay $1,362, I paid $1,278 so my spread sheet is always off on stocks with splits from yahoo finance etc.
Anyone have a comment or solution???? Thanks in advance.
I too have troubles with these split things. I think I have it now. Did you have a typing error in your numbers?...to reiterate: Did you say you originally purchased 50 shares @ $38.75? You typed that your investment was $1278. total...however, when I multiply $38.75 by 50 I get a total original cost of $1937.50...NO? Also when I do mine manually I usually include the commission...am I wrong to do that...doesn't it give me a "truer" cost per share. I'm new at this so set me straight if I've blown it here.
when figguring your buy cost, its ok to include all costs, but dont leave that in your balance, if you want true accuracy. What happens if the stock splits or pays dividends . If its a split situation with divedends reinvesterd you get farther from actual cost. While this may not be much it still will not be accurate. There are to many varibles. Hopes this helps you and dosent confuse you more. I hope this is finally the start for starbucks to get active on the market. Its aboutd time, is this the break of something big? I hope so.
That's my complaint right there, just putting the adjusted price times the 75 shares does not equal to what you get by doing it manually. Just trying to figure out why and how to "trick" the portfolio tracker to get it right.