Investment Ledger - Share Split Event
The event is used to manage a share split transaction. It is likely to be an infrequent event.
What is a share split?
Occasionally the entity invested in may change the unit price of its shares by issuing additional shares (at an amended unit price) so the the value of the holding remains the same. For example 100 shares at £10.00 becomes 200 shares at £5.00 each.
What to enter
- Reference
- A reference can be entered if required
- date
- A date for the transaction is mandatory
- Quantity
- Enter the number of additional shares received
- Unit Price
- Enter the revised unit price
Accounting Entry Structure
The system stores the new holding quantity and unit price. values remain the same.