Consider a (fictitious) scenario:
On 8/3/2022, John bought 50 shares of AAPL.
A "4 for 1" stock split occurred on 8/31/2020.
On 09/02/2022, he sold 200 "post-split" shares.
This caused a negative shares condition in TradeLog, as more shares were sold than were previously bought - For more information, please our topic on Negative shares.
Open Shares: -150
To correct this, the "pre-split" opening transaction must be adjusted:
John now uses TradeLog to:
- Select the opening transaction of AAPL bought on 8/3/2022
- From the Adjustments menu, click Stock Split
- Verifies the appropriate ticker (AAPL) and enters split ratio ("4" for "1")
- Leaves the split date set at 8/3/2022, and clicks OK.
The "pre-split" transaction is adjusted accordingly: the number of "pre-split" shares are quadrupled and the price is quartered (see below).
Open Shares: 0
The "negative shares" error has been resolved and the trades are matched correctly.
Return to Adjusting for Stock Splits topic