tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/82-rights-issueInfinite Kind: Discussion 2018-03-17T05:39:40Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/366351732015-04-21T19:47:19Z2015-04-21T19:47:19ZRIGHTS ISSUE<div><p>I am basing this response on <a href="http://www.investopedia.com/terms/r/rightsoffering.asp">http://www.investopedia.com/terms/r/rightsoffering.asp</a></p>
<p>If this is not correct please let me know.</p>
<p>My understanding is the right issue allowed you to buy the
security at x price. This should be entered as a buy transaction.
Then the sale is a simple sell transaction. There should no no real
difference from a normal buy/sell transaction.</p>
<p>Tom Freeman<br>
Infinite Kind Support</p></div>Tom Freemantag:infinitekind.tenderapp.com,2009-01-14:Comment/366351732015-04-21T20:35:41Z2015-04-21T20:35:41ZRIGHTS ISSUE<div><p>Thanks Tom. In another situation how do I handle a stock split?
For example a company may want to issue 2 new shares for every
existing one. This reduces the price of the share.</p>
<p>Ken</p></div>Ken Broomfieldtag:infinitekind.tenderapp.com,2009-01-14:Comment/366351732015-04-21T22:12:01Z2015-04-21T22:12:01ZRIGHTS ISSUE<div><p>In the investment account:</p>
<ol>
<li>select the "Securities Detail" button<br></li>
<li>select the stock in question using the pop down<br></li>
<li>select the "Stock Split" button</li>
</ol>
<p>enter the appropriate details</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/366351732015-07-01T22:16:47Z2015-07-01T22:16:47ZRIGHTS ISSUE<div><p>DWG's advice is correct. There were some issues with the stock
split functionality, mostly with data files converted from earlier
version of Moneydanence, so please make sure you are using the
current build of MD 2015 which you can download from here: <a href="http://infinitekind.com/preview">http://infinitekind.com/preview</a></p>
<p>The changelog for the preview builds can be seen here: <a href="http://help.infinitekind.com/kb/moneydance-2015/moneydance-2015-preview-changelog">
http://help.infinitekind.com/kb/moneydance-2015/moneydance-2015-pre...</a></p>
<p>Tom Freeman<br>
Infinite Kind Support</p></div>Tom Freemantag:infinitekind.tenderapp.com,2009-01-14:Comment/366351732016-01-01T15:24:58Z2016-10-02T18:29:00ZRIGHTS ISSUE<div><p>Tom</p>
<p>you answer to the rights issue question does not deal with the
fact that some of the original bookcost of the original shares
transfers to the rights when they are issues (since they are
effectively a sub division of the original holding).<br>
Money Dance doesn't seem to have any provision for this aspect of
rights issues.<br>
Andy</p></div>aguilletag:infinitekind.tenderapp.com,2009-01-14:Comment/366351732016-01-03T19:55:45Z2016-01-03T19:55:45ZRIGHTS ISSUE<div><p>I am basing the following on <a>
this:https://www.gov.uk/guidance/capital-gains-tax-share-reorganisa...</a></p>
<p>MD assumes the cost basis as the sum total spent on the
security. From the above it seems like UK tax system uses average
cost method for determining cost basis.</p>
<p>Exercising your rights if on the same class of the security
should mean a lowering of your average cost basis based on the
discount of the rights issue. The same as if the stock price went
down and your purchased at a lower price.</p>
<p>But what i believe you are referring to is when the rights are
for a different class of the security. In my reading of the above
link you would treat the rights similar to a stock spin off as
shown in this FAQ: <a href="http://help.infinitekind.com/kb/investments/how-to-account-for-a-stock-spin-off">
http://help.infinitekind.com/kb/investments/how-to-account-for-a-st...</a></p>
<p>Though cumbersome, it does adjust the cost basis of the original
holdings in relation to the new holdings.</p>
<p>If I am still not understanding please forgive me and any
specifics you can supply would help.</p>
<p>Tom Freeman<br>
Infinite Kind Support</p></div>Tom Freeman