[GNC] Stock Split - am I doing this right?

replicon replicon at gmail.com
Sat Jul 30 19:10:14 EDT 2022


I'm trying to capture the AMZN stock split that took place a while back.

I was surprised by the UI, since instead of "enter split ratio" or
something like that, it wants me to manually calculate additional stock.

Is the correct way to do it:

   - Multiply stock holdings by 19, and add that as additional stock (since
   it's 20-to-1)
   - Set the "new price" to the value it had when the split occurred

My concern is, since stock purchases we track in GNUCash include the basis,
doesn't the stock split tool cause it to lose track of cost basis?

I imagine the correct way to track things like capital gains is that any
transaction where stock was received at a certain price should be
supplanted with a new transaction for 20x that much stock, at 1/20 of the
value at time of receipt. Is that not correct? Or is that actually
happening under the hood without my noticing?

Thanks!


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