How do we handle shares owned through a broker and directly with a company?
You may run into a situation where the club owns shares both with a broker, and through a direct investment option with the company itself. If that happens, we can offer you three ways to handle this:
First Option. You can treat the Direct Investment shares and the Broker's shares as if they were shares in two separate securities. If you already entered transactions for the shares, create a second security ID record with a slightly different name. Then delete and re-enter the transactions, assigning them to the appropriate ID record. Obviously, this is a lot of extra work, and is not generally recommended.
Creating a new security In Club Accounting 3 (CA3):
- Select Securities from the View menu.
- Click Add New on the left hand side of the screen.
- Enter the stock information with the same ticker symbol, but a slightly different name,a nd then click OK.
Remember that when you re-enter the transactions in CA3 to choose to show inactive check-box for the first transaction.
Creating a new security in Club Accounting Online (CAO):
- Enter the first new transaction with a fake ticker symbol, such as XYZ.
- Once you have the first transaction entered, go to Accounting > Securities >Update Security Settings.
- Find the security with the XYZ ticker symbol, and click the Edit link next to the name.
- On the Edit Security Settings screen, change the company name and ticker symbol to how you would like them to show up on your club reports. If you need to adjust the Exchange and type, do this as well.
- Scroll down to the Quote Symbol box near the bottom of the page, and enter the actual ticker symbol for the stock; this will make sure that regardless of what is entered in the Company name and Symbol boxes, CAO will get the correct price information.
Second Option. If you prefer to keep the shares combined, you will have to do the following:
- Check if you have any stock splits for which you receive both fractional shares and cash in lieu. Treat them as though you had received shares for the entire amount. Then enter a Sell transaction for those shares for which you received cash in lieu.
- Conversely, check if you have reinvested dividends in the Direct Investment account, but not with the Broker. Enter all dividends as cash dividends, then enter a Buy for those portions which were reinvested.
Third Option. If possible, the solution we suggest is to transfer all the shares from the Direct Investment program to the brokerage, or vise-versa, if available.