ADD/DELETE PORTFOLIO TRANSACTIONS              SM3.11              PAGE 1 OF 10

This screen operates ONLY on the active portfolio, which is specified from the
Master Menu.  It is used to buy and sell securities, or to make corrections to
purchase or sales transactions.  You can also process distributions of capital
such as stock splits and mutual fund distributions.

First, a few definitions.  When you purchase a security, you are said to have
taken a "long" position in that security.  If you borrow money for that pur-
chase, that is known as buying on margin.  If on the other hand you borrow the
security itself, you are said to have taken a "short" position or to have made
a "short" sale, and you will hope to replace that security later on at a lower
price.  This re-purchase is referred to as "covering" the short position.  In
either of the above cases, you have an "open" position.  The act of selling a
security you own, or covering a short position, is sometimes referred to as
"closing" that position.

This program cannot handle short sales.  Short sales are more often used by
professional traders than by individuals.  They pose the possibility of limited
gains, but of unlimited losses.  Although this program will handle purchases
from a margin account, it doesn't analyze margin and investable funds.


ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 2 OF 10

Notice that the screen was divided into four areas.  From top to bottom these
are the column headings, individual purchases, portfolio summary and menu.  The
column labelled DATE OF SALE OR CURR.PRICE contains the current price per share
(or other unit), if available, for open positions and the date of sale for
closed positions (an open position has no date of sale).  The column labelled
MARKET VALUE contains the current market value (or purchase cost if current
price per unit is not available) for open positions, or sale proceeds if the
position is closed.

The portfolio summary has a line labelled POSITIONS CURRENTLY OPEN. This line
shows the total cost basis, market value and dollar gain or loss in the port-
folio as of the current (DOS system) date.  The line labelled POSITIONS CLOSED
THIS YR. shows the total cost basis, sale proceeds and gain or loss in securi-
ties you sold during the current calendar year. (WARNING: The program gets the
calendar year from the DOS system date).

The lower right-hand corner of the screen shows the name of the portfolio and
how full it is, for example 34/255 means the portfolio contains 34 transactions
out of a maximum of 255.


ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 3 OF 10

The selector block (solid video bar) is used to select an individual position
to close out, delete or make a correction to.  It can be moved up and down by
using the up- and down-arrow keys; the display will "scroll" automatically as
required. In addition the Home, End, PgUp and PgDn keys can be used to "browse"
through the portfolio transactions; and the left- and right-arrow keys can be
used to select an individual data item to be corrected.

The other available menu choices are explained below.  The portfolio summary is
updated automatically each time you make any changes.

A = ADD/Delete Securities.  This function will take you to the Stock Select
    screen, which is also used to add or delete securities.  Any data you have
    entered will automatically be saved on disk at this time. A security cannot
    be bought in any portfolio until it has been added to the catalog, which
    you do from the Stock Select screen.  This screen has its own menu and Help
    function for more information.





ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 4 OF 10

B = BUY a security (long).  This function is also used to process a cash divi-
    dend re-investment, since the program does not account for actual income
    received.  A dividend re-investment is therefore just like any other pur-
    chase.  The information (number of shares and purchase cost) should come
    from your account statement.

    All purchases are kept in ascending order by type of security (not shown on
    the screen), security identifier (usually the ticker symbol) and the date
    of purchase (or date of account balance for cash equivalent accounts).

    Security types are kept and displayed in the following order: cash & margin
    accounts, commercial paper, government, municipal and corporate bonds,
    preferred and common stocks, warrants and options, and precious metals.

    The program first asks you for a ticker symbol, which must already exist in
    the catalog.  If it doesn't exist, use the A function (explained previous-
    ly) to go to the Stock Select screen and add that security to the catalog.
    If there is no official ticker symbol, one must be made up. Once a security
    has been added to the catalog, it can be purchased any number of times in
    any portfolio in the data directory.

ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 5 OF 10

B = BUY a security (long).  After you enter the ticker symbol you will be asked
    to enter the date of purchase.  The new transaction will then be shown on
    the screen (you can still cancel by pressing Esc).

    Next, enter the number of shares or other units (if applicable).  For bonds
    or T-bills, use the face value in hundreds, for example enter 250 if you
    bought $25,000 face value of municipal bonds. Then you enter the cost basis
    (normally, that is what you actually paid for the security). The cost basis
    should include commission and other expenses.  This information should be
    available from your brokerage firm or mutual fund statement.

    If the security is a cash or margin account or commercial paper, you will
    be asked for the account balance instead of cost basis.  You can have any
    number of account balance entries with different dates for the same account
    and the correct one will be automatically selected on reports according to
    the report date(s).

    If appropriate and it hasn't already been entered, the program will also
    ask for the current price (market value) per share or other unit.  If no
    price is available, market value will be assumed to be equal to cost basis.

ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 6 OF 10

D = DISTRIBUTION or split.  This function is to apply a stock split, stock div-
    idend or mutual fund distribution.  It is not intended for re-investment of
    cash dividends.  Information about the distribution of income or capital
    (from mutual funds, or sometimes from utility stocks) can be found in the
    corresponding statements which the fund sends, usually each quarter.  They
    should tell you whether it is income or capital and what effect it has on
    your holdings. As a rule, a cash dividend represents interest and dividends
    the fund receives and remits to you, just like interest on a savings ac-
    count. A capital distribution represents profits on the sale of securities.

    The author of this program is not a professional accountant, and you are
    strongly urged to seek the advice of your own accountant or tax advisor
    regarding these matters.  He or she can assist you as to whether a distri-
    bution is capital or income and what the accounting and tax effects are.

    WARNING!  Application of a distribution or split here WILL NOT affect the
    price history (stock charts).  YOU MUST go to the data ENTRY screen for
    this security and apply the distribution or split there also, in the same
    manner.  To get there now, press Esc and then A to get to the Stock Select
    screen, select the security you want, and then press E.

ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 7 OF 10

D = Distribution or split (continued).  To apply a distribution or split, move
    the selector bar to any transaction in the applicable security and press D.
    The security must be a common stock or mutual fund.  At least one open
    position must exist, but the selector bar doesn't necessarily have to be on
    that open position.  Press the Esc key any time to terminate the function.

    A distribution or split can be applied using either of the two methods des-
    cribed below.  The program may ask if you are applying a (S)tock split or
    a (D)istribution.  If you answer S the first method is used; otherwise the
    second method is used.  Although normally the first method is for stocks
    and the second is for funds, the end result is the same - a ratio is com-
    puted and unit price and quantities are changed.  Either method can be used
    for stocks, depending on what information is available.

    To apply a stock split or stock dividend, you enter the appropriate ratio
    as prompted by the program.  For example, to apply a 3-for-2 stock split,
    just type 3 <enter> 2 <enter>.  To apply a 5% stock dividend, type 1.05
    <enter> (the program assumes it's 1.05 to 1).  A "reverse split" is OK
    (a warning message will be flashed) and can be used to "back out" a normal
    split or other distribution.

ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 8 OF 10

D = Distribution or split (continued).  For a mutual fund (or utility stock)
    distribution, you enter the net asset value or closing price as of the day
    BEFORE the distribution; then you enter the dollar amount (per share) of
    the distribution.  The program will compute the required ratio.

    A distribution or split need be applied ONLY ONCE, in any portfolio.  After
    entering the required parameters, you are prompted to verify Yes or No.
    A distribution or split will apply to ALL positions in the selected stock
    or fund, in ALL portfolios within the scope of the catalog (all portfolios
    on the current data disk or sub-directory).  Thus, the number of shares and
    share prices will be adjusted automatically in ALL open and closed posi-
    tions, not only in this but in other portfolios.

    Another WARNING:  You STILL need to apply the distribution in the STOCK
    CHART for this security.  That is done from the data ENTRY screen, in the
    same way it is done here except in addition you can adjust dividends, price
    goals and buy/sell targets.




ADD/DELETE PORTFOLIO TRANSACTIONS                                  PAGE 9 OF 10

C = CORRECTION or CHANGE. This function is used to correct any data item in the
    selected purchase entry.  The program won't allow you to change something
    that doesn't make sense, such as annual income for a call option.  Although
    you can change current prices from this screen, they are updated automatic-
    ally when you update current prices using D or W from the Master Menu.

    You can change the ticker symbol using this function, but that applies ONLY
    to transactions in the ACTIVE portfolio.  The same ticker symbol will have
    to be changed in each individual portfolio that has it. Changing the ticker
    symbol here does NOT affect the catalog or price history files.

    For best results, change the ticker symbol in the View/Change screen FIRST.
    (To get there press A from this menu, select the security you want and then
    press C.)  Doing that will also take care of re-naming your price history
    files.  THEN change the ticker symbol in each portfolio.

S = SELL the selected purchase (close the open position).  The selector bar
    must reside on an open position.  The security cannot be a cash or margin
    account or commercial paper, as those transactions represent the account
    balance.  This function has its own Help screen for further explanation.

ADD/DELETE PORTFOLIO TRANSACTIONS                                 PAGE 10 OF 10

W = WIPE out (delete) the selected position.  You can delete any transaction
    regardless of whether it is open or closed.  It is better to close a posi-
    tion and leave it in the system for at least a year, rather than to simply
    delete an open position when a security is sold.  This is to allow correct
    comparison of portfolio status across a range of dates, and to provide
    information on closed positions (gains/losses) for tax purposes.

    The WIPE out function is mainly intended for purging a portfolio of the
    oldest positions that have been closed out, especially if the portfolio is
    just about full and you need more room to add new transactions.

    The WIPE out function is also handy when breaking up a nearly full port-
    folio into two parts.  Make a copy first, using the DOS COPY command, and
    add it to the Portfolio Analyzer DATA diskette or sub-directory under a
    different name.  Thus you could end up with two portfolios named, for ex-
    ample, PERSON90 AND PERSON91.

X = EXIT back to the Master Menu.  All data you have entered is saved on disk
    at this time.  The Escape key performs the same function.
