Recording Stock Splits

To record a stock split, click the Stock Split button on the Quotes and Splits page, then select the security type (Stock, Option, etc.) then select the security that split. On the Split Definition screen enter the following information.

Table VII-4: Stock Split Data

Data Field Description

Split: XXX For: YYY Enter the ratio of the stock split such as 2 for 1 or 3 for 2, etc. Stock dividends are also entered as a ratio. For example, a 10% stock dividend would be entered as 1.1 for 1.

Effective Date of Split. Enter the date when the stock split became effective.

When a stock split is recorded, MI updates historical stock prices having dates on or before the effective date of the split in line with post split prices. For example, prices occurring on or before the effective date of a 3 for 2 split are multiplied by a factor of 2/3.

If you hold shares of a stock on the effective date of a stock split, MI also adjusts the number of shares held to reflect the stock split. For example, if you hold 100 shares of a stock when it splits 3 for 2, MI will increase the number of shares by a factor of 3/2 (i.e., the 100 shares becomes 150 shares). Share lots that have already been sold are not affected by recording a stock split.

Hint: Before recording a stock split you should be sure that your share positions in that stock are correct and reflect your share positions on the effective date of the stock split.

Warning: If a stock split occurs after shares have been sold, the return on value report will be computed using pre-split shares at post-split prices. While the starting and ending values will be incorrect, the Return on Value will be correct.