How to handle stock splits
In StocksCafe, the “correct” way to handle stock splits are to simply create two transactions on the split date.
Example: Amazon recently had a stock split on 6 June 2022 of 1:20.
Let’s assume you have 1 share of Amazon bought at $2,500 on 1 June 2022 (the date bought does not really matter).
The two transactions that you should create are:
1) A SELL transaction of 1 share of Amazon with price $2,500 on 6 June 2022
2) A BUY transaction of 20 shares of Amazon with price $125 on 6 June 2022
We recommend users to use this page to assist you in creating these two transactions.
One click to handle Stock splits
However, the above assumes that you knew about the stock split event and the details around it.
To make things even easier, StocksCafe is introducing Events, a new feature that consolidates all the stock splits and other corporate events that StocksCafe knows about. It will even remind you about the event.
All you need to do is simply click “Accept” and StocksCafe will automatically create all the required transactions for you.
- Question: What events will be shown?
Answer: Only past events are available. Events that are in the future will not be shown until that date arrives.
- Question: What if I spot a mistake with a stock split (or other event)?
Answer: It would be great if you can report it via the forum.
- Question: What if I mistakenly clicked “Accept”?
Answer: Do not worry, what this feature does is simply create transactions for you. All you need to do is simply delete the auto-generated transactions to undo the changes.
- Question: What if I mistakenly clicked “Ignored”?
Answer: You can simply go to the Ignored tab and delete the response. The event will once again appear on the list.
- Question: Why can’t StocksCafe fully handle stock splits automatically?
Answer: Despite us paying upwards of $30K in data licensing, they are still not guaranteed to be 100% correct, hence we prefer to give users the ability to control and check it.
Although the majority of the events that this new feature handles will be Stock Splits, it is actually very flexible and can handle other types of events such as M&A, ticker changes, etc.
Let us know whenever you see a corporate event that you believe should be handled by StocksCafe.