STOCK SPLITS AND FUND DISTRIBUTIONS          PA3.00          PAGE 1 OF 4

In the Personal Portfolio Analyzer, stock splits, stock dividends and
mutual fund distributions are applied from the Transaction Register.
To get into the Transaction Register from the Master Menu, type B to go
to the Portfolio Select screen.  Select any portfolio that has the stock
or fund you want.  Then press Enter to see the Transaction Register.

To apply a stock split, stock dividend or fund distribution, type L to
invoke the "stock spLit or distribution" function.  The program will
then ask you to choose either the Distribution or the Split function.
Type D to apply a mutual fund (or utility stock) distribution, or type
S to apply a stock split or a stock dividend.  Or type H to see the User
Manual chapter you are now reading.









STOCK SPLITS AND FUND DISTRIBUTIONS                          PAGE 2 OF 4

The end result is the same with either function: a ratio is computed and
a different unit price and number of shares are displayed.  Either func-
tion can be used for stocks or funds, depending on what information is
available at the time.

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 divi-
dend, type 1.05 <enter> (the program will assume it's 1.05 to 1).  A
"reverse split" is OK (a warning message will appear) and can be used to
"back out" a normal split or other distribution.

For a mutual fund (or utility company) 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 pro-
gram will compute the required ratio.  NOTE: This function is not inten-
ded for re-investment of cash dividends.  A dividend re-investment is
handled just as if you were paid in cash and then gave the money back
with instructions to buy additional shares; use the BUY function for
that.

STOCK SPLITS AND FUND DISTRIBUTIONS                          PAGE 3 OF 4

Information about the distribution of income or capital gains (from
mutual funds, or sometimes from utility companies) can be found in the
corresponding statements which they send, usually around each quarter.
They should tell you whether it is income or capital gains and what
effect it has on your holdings.  As a rule, a cash dividend represents
interest or dividends the fund receives and remits to you, just like a
dividend on an individual stock.  A capital gain distribution represents
profits on the sale of securities or other property.

The author of this program is not a professional accountant, therefore
you are urged to seek the advice of an accountant or tax advisor regard-
ing these matters.  He or she can assist you as to whether a distribu-
tion is capital or income and what the accounting and tax effects are.








STOCK SPLITS AND FUND DISTRIBUTIONS                          PAGE 4 OF 4

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

The program does not actually change the number of shares in each indi-
vidual purchase.  Instead, it changes the "unit multiplier" value which
is stored in the catalog for each stock or fund.  Whenever the number of
shares is entered or displayed, it is automatically adjusted by this
value.  This technique guarantees the correct number of shares will be
reported for all transactions in all portfolios in the data directory.

Price quotes and annual dividends per share are also stored in the cata-
log.  These data items are adjusted directly, as they are known to all
portfolios.
