GNUCash is making up prices

[ghaverla@freenet.edmonton.ab.ca]

On 18 Sep 2001, Roland Roberts wrote:

[ ... ]

> I don't believe this is correct.  If the number of shares is not exact
> *as reported* then the differences can eventually add up to something
> which *does* show up on the report.  If the number of shares is
> reported as in the following contrived example, you have a problem:
> 
>     Exact Number   Reported Number     Exact         Reported
>      of Shares        of Shares     Total Shares  Total Shares
>        1.2344           1.234          1.2344         1.234
>        1.1123           1.112          2.3467         2.347 ?

I think you need to look at what is being "conserved".  I think
that dollars are the quantity being conserved.  Counter example
that probably shows this conservation property better.

When travelling, most of us think about a rate (distance per
unit time or speed).  And if we want to average some speed
over a distance, it (almost) works out that if we spend
a little time 5mph over the limit and (about) the same
time 5mph under the limit, we get the average we want.
The example is someone making a trip and at the halfway point,
they realize their average speed is only half of what they
want it to be.  How fast do they have to travel the remaining
half of the trip?  Conventionally, the answer is infinite
because the conserved quantity is time, and they have used
up all of it.  (Relativistically it is C I believe.)

The mutual fund company really doesn't care how many shares
you buy, they are interested in how much money you give them
because that (the money) is what they are going to invest.

Or that's my thinking on the topic.  Maybe someone from
a legal end at a mutual fund company can say what is
legally the case.  Whatever happens, I don't think any
descrepency grows to any substantial value even over a
long time.

Gord

Matter Realisations     http://www.materialisations.com/
Gordon Haverland, B.Sc. M.Eng. President
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