Dividends, Share Price, and Current Balance

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osc.williams

09 Mar, 2015 04:17 PM

I started a new ledger/file in MD, set up my accounts, and downloaded transactions. The dividends in my Schwab broker account have a hidden share number of 0 (seen in the Securities Detail tab of investment account) and a share price of 10,000 which is grayed, however, it affects the Balance summary as shown on the Home Page and the left column of accounts. I have a negative Investment Balance of -$92,233,720,368,288,082.97 due to this issue, I believe, and that is not accurate. I've read through the Knowledge Base and did not find a proper fix though many people have experienced this issue. You know of the issue. What is the solution?

Also, reinvested dividends are downloaded as a dividend and a buy, which has tax implications because the dividend was not realized but is treated as it were.

These two issues create a lot of cleanup every download.

  1. 1 Posted by dwg on 11 Mar, 2015 08:21 PM

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    As far as I am aware dividends whether they be received in cash or reinvested in more shares are deemed to be income received in that year. Your Tax laws may be different, but it is hard to imagine any government not treating this as income just because it was reinvested

    The only exception I have seen is where they are "paid" out of a type of capital account in which case they are usually treated as a return of capital.

  2. 2 Posted by Ben Spencer on 13 Mar, 2015 04:12 PM

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    I am not certain I understand what you are describing. Could you attach a few screenshot to highlight the problem you are having.

    Ben Spencer
    Infinite Kind Support

  3. 3 Posted by osc.williams on 13 Mar, 2015 06:24 PM

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    this screenshot shows the negative account balance on the left. The account ledger shows typical transactions and also a 6:1 reverse split. This account ledger goes back to March 2012 and it has not been cleaned up. I know there is a beginning balance issue and possibly missing initial investment issues, too. The cash balance is not far off. Reinvested dividends are a DIV and a BUY. Interest received is incorrectly coded as a Xfr and assigned a bank account.

    I think the fact that reinvested dividends are two transactions confuses the software. IMHO.

    The reverse split has to be defined as to shares/price and value, but i don't think in its current state that it much affects the summary balance on the left of the page.

    I'm willing to clean up the account and detail for you what I do and what issues I find with the software.

    Not sure what causes a negative balance of -$92 Quadrillion.

  4. 4 Posted by Ben Spencer on 13 Mar, 2015 06:29 PM

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    I think the most likely cause of the -$92 Quadrillion is a bogus price in the security price history.

    Can you click on the Security detail view of the investment account and for each of the securities associated with that account click the History button and see if any of them have an enormous price.

    Ben Spencer
    Infinite Kind Support

  5. 5 Posted by osc.williams on 13 Mar, 2015 06:46 PM

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    I think you got it! The RussianBull screen shows it is the culprit. How do i clean that up?

    I've also attached a shot of Blackberry which also shows the wrong share value and initial cost, so it looks like a huge loss but that is not true.

  6. 6 Posted by -Kevin N. on 13 Mar, 2015 07:04 PM

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    Hi osc.williams,

    I noticed that the description for the Russian Bull indicates that there may have been a recent reverse split for that security. Correct? If so, it doesn't appear that the split has been applied. Click the 'Stock Split' button to apply the reverse split.

    For each security, click the 'History' button.
    In the resulting window, check the 'Current Price' field for accuracy. If incorrect, make the necessary adjustment and then click the 'New' button so as to commit the new price to the underlying table.

    HTH -Kevin N.

  7. 7 Posted by -Kevin N. on 13 Mar, 2015 07:16 PM

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    Hi osc.williams,

    One other observation regarding the Russian Bull, there appears to be no initial 'Buy' txn for the security. Only a 'Sell' of 3200 shares on 2/23/2014 for a sum of $0. ???

    -Kevin N.

  8. 8 Posted by osc.williams on 13 Mar, 2015 07:49 PM

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    Is it better to create the stock split in the Securities Window from the Command Bar or through the Securities Tab for the ledger?

    I guess i then delete the entries in the ledger and the bogus stock created by the system (DIREXION SHS ETF XXX1 for 6 REVERSE SPLIT) and let the system handle it?

    You'll notice that DIREXION SHS ETF DAILY RUSSIAN BULL 3X changes to DIREXION SHS NEW ETF DAILY RUSSIAN BULL 3X. So there has to be a sell and a buy and not a split as you've suggested. Am I right?

    I've attached a screen shot that shows the infinity sign for current value. When i clicked Done and closed the window, the value mysteriously changed to $1 and the -$92 Quadrillion figure went away. The new balance is $35,508.27, which is also inaccurate but you've told me how to fix things so I'll get this cleaned up.

    Thank you for your time and patience with me!

  9. 9 Posted by osc.williams on 13 Mar, 2015 08:20 PM

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    Here's what the transactions look like in my Schwab statement.

  10. 10 Posted by -Kevin N. on 13 Mar, 2015 08:28 PM

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    Hi osc.williams,

    TBH, I'm not sure why a new security was created post reverse split.

    The solution may or may not be as simple as deleting the new security however. There may now be a behind-the-scenes connection with the new security in Moneydance and the new security at your broker. Deleting the new security may result in it being recreated with each new download.

    I suppose that you could try entering a 'Sell' of the 3200 shares of the prior security and then a 'Buy' of the same number of shares of the new security at the same cost. Then perform the reverse split. It looks like, post split you receive $7.17 in cash for the remaining 2 shares.

    I'm not sure what the ramifications would be of entering the split directly into the register. I've only entered stock splits, whether reversed or not, by using the 'Stock Split' button in the 'Securities Detail' view.

    Make sure that you have a recent backup or copy of your data before deleting anything that may be difficult to re-enter.

    Let us know how you make out. OK?

    HTH -Kevin N.

  11. 11 Posted by dwg on 13 Mar, 2015 08:56 PM

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    On a side note, when you said Dividends I assumed you were talking about payments received from directly investing in company shares, from subsequent posts it would seem to me that you re talking about distributions received from what I would call a managed fund/unit trust type of investment in which case the amount received is not directly related to taxation and while processed as a "Dividend" type transaction is not handled as such for taxation purposes.

    I actually place these in a category called "Unit Trust Distributions" for recording purposes.

    Apologies.

    Des

  12. System closed this discussion on 19 Mar, 2016 04:54 AM.

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