price editor

[David Carlson]

On 6/9/2015 5:23 PM, annapolishome wrote:
> DavidC's info was enough to the values close, but after i entered a price i
> received additional income that was re-invested to additional shares.  the
> new shares did not reflect the price i entered previously.  does this mean
> that i have to enter the share price each time i acquire more shares through
> the re-investment program?
>
>
>
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Yes, as was explained in that other post about DRIP's, each reinvestment
transaction is actually a combination of a dividend which must be
recorded as income and a purchase of additional shares with the proceeds
from that dividend payment.  That can be recorded either as two separate
transactions or combined into one transaction as discussed in the help
manual.  Each purchase is at a different time and price as noted on your
statement.  Sometime in the future you will be selling some or all of
those shares and you will find that it is somewhat difficult to record
correctly in GnuCash, but if you make each re-investment transaction
entry correctly, that will go a long way toward collecting the data you
need to calculate your capital gain or loss.

Just a side note, the term DRIP "Dividend Re-Investment
Program"originally arose as a description for fractional shares of
stocks in many U.S. corporations that have special programs for
individual shareholders to re-invest dividends, since one normally
cannot purchase fractional shares.  As far as individuals are concerned,
Mutual Fund reinvestment programs work in a very similar way here in the
U.S.

David C