Copyright: Stock Partner Help Copyright 1992


Stock Partner Help Contents
Stock Partner 4.1 Help Contents

Contents lists the Help topics available for Stock Partner.

To learn how to use Help, press F1 or choose Using Help from the Help menu

Stock Partner Topics:

Overview

Calculations Screen

Selected Trade

Trade Status

Trade Type

Entering Values

Basic Calculations Performed

Stock Ticker

Cost of Capital

Dividends

Making Graphs

Using Stock Notes

Creating Reports

Company Screen

Updating the Portfolio

Program Setup

Disclaimer, Trademarks


Stock Partner Calculations Screen
Click on the part of the Calculations Screen that you want to know more about.


Selected Trade

The Selected Trade list box contains the names of all trades entered into Stock Partner.  The name of the currently selected trade is always displayed in the list box window.  Other trades (when present) can be selected by clicking on the list box's down arrow.  When a trade is selected, all screen information is immediately updated to reflect the stored values of that trade.  In addition, all company-oriented screens will automatically reference the company data corresponding to the selected trade.

The New button is used to enter new trades (and company names) into Stock Partner.  When New is pressed, the New Trade window will appear.  Select a company by clicking on the company's name in the list box.  Company names can be added to the list by pressing Add a Company, and can be deleted (if no trades exist for that company) by pressing Delete a Company.  After selecting a company, enter a unique name for the new trade in the text box.  Use descriptive names such as "first buy," "averaging down," "David's pick," etc.  (For Options Trade Type, use "Jan 60 Call," "Mar 55 Put," etc.)  A new trade is permanently associated with a company through the use of the stock ticker symbol.  The initial trade values are set to zero, except where the configuration file has established minimums or defaults.

The Save button is used to save the currently displayed information to the trade file.  Trade information is saved automatically whenever the Trade Status is changed.

The Delete button is used to remove the selected trade from the trade file.  When Delete is pressed a confirmation window will appear.  NOTE:  When a trade is deleted, any associated Dividend information is also deleted.  When the last trade on file for a particular company is deleted, all associated Graph and Notes data is also deleted.


Trade Status

The Trade Status section is used to establish that a trade is being Evaluated, that a trade has been Opened, or that a trade has been Closed.

Evaluating indicates that the trade has been entered into Stock Partner in order to evaluate possible scenarios.  All program controls are enabled in this mode.

Opened indicates that a trade has been opened.  When the Opened option is selected, the Trade Opened window will appear in which the Total Commission Actually Paid and the Date the Trade was Opened can be entered.

The Total Commission Actually Paid is initially set to the estimated commission calculated by Stock Partner.  Actual commissions up to a maximum of 50,000 dollars can be entered.  NOTE: setting this value to zero causes Stock Partner to continue using the estimated value.  If a trade is commission-free, use one cent as the actual commission.

The Date the Trade was Opened is initially set to the system date.  This date can be adjusted to accommodate trade Openings that occurred up to two years before the system date.

After setting the Total Commission Actually Paid and the Date the Trade was Opened, press the OK button.  When the Trade Opened window disappears the opening trade date is displayed next to the Opened option, the Shares and Price per Share scroll bars are disabled, and the Cost of Capital will be recalculated to reflect the actual number of months that the trade has been open.

The small button next to the Opened option allows adjustments to be made to the Total Commission Actually Paid and the Date the Trade was Opened.

Closed indicates that the trade has previously been Opened and is now being Closed.  When the Closed option is selected, the Trade Closed window will appear in which the Total Commission Actually Paid and the Date the Trade was Closed can be entered.

The Total Commission Actually Paid is initially set to the estimated commission calculated by Stock Partner.  Actual commissions up to a maximum of 50,000 dollars can be entered.  NOTE: setting this value to zero causes Stock Partner to continue using the estimated value.  If a trade is commission-free, use one cent as the actual commission.

The Date the Trade was Closed is initially set to the system date.  This date can be adjusted to any date since the trade was Opened.

After setting the Total Commission Actually Paid and the Date the Trade was Closed, press the OK button.  When the Trade Closed window disappears the date is displayed next to the Closed option, the (Closing Trade) Price per Share scroll bar is disabled, and the Cost of Capital will be recalculated to reflect the actual number of months that the trade was open.

The small button next to the Closed option allows adjustments to be made to the Total Commission Actually Paid and the Date the Trade was Closed.

Pressing the Broker button will bring up a text box in which phone numbers, addresses and other contact information can be conveniently entered and retrieved.  There is no predefined format for this information.  Since this information can be somewhat sensitive, the data is scrambled while being saved to disk.  Keep in mind, however, that to keep any information really secure you should maintain physical control of your PC and all of its data files.


Trade Type

Three Trade Types are available in Stock Partner.

Taking a Long position means that you actually own the specified number of shares and anticipate that the stock price will rise.  With Trade Type set to Long the calculations are straightforward.  Net Sales Value minus Total Purchase Cost equals PROFIT.  Cost of Capital is based on the entire principal amount, and dividends (if applicable) are paid to you, the owner of the stock.

Taking a Short position generally means that you have sold the specified number of "borrowed" shares which must later be "covered."  A Short position is taken when it is anticipated that the stock price will fall.  With Trade Type set to Short the calculations are slightly more complicated.  The Net Proceeds of the Short sale minus the Covering Costs equals PROFIT.  Cost of Capital is based on the fraction of the principal specified in the Short Sale Margin Requirement item of the Setup screen.  No dividends are received when a stock is Shorted.

Options can be used as a speculative investment or as a hedge against adverse price movements in equity investments.  Call Options and Put Options are treated in the same way by Stock Partner and the "strike price" of the Option is not recorded.  (Use a descriptive trade identifier in New Selected Trade such as "Jan 60 Call" or "Mar 55 Put.")  When Options is selected, a window will appear in which an Options Expiration Date of up to two years from the system date can be selected.  (The expiration date is not used in calculations and is included only as a reference.)  With Trade Type set to Options, Net Sales Value minus Total Options Cost equals PROFIT.  No dividends are received as the result of owning an Option.


Entering Values

The three primary stock trade values are entered using the scroll bars labeled Shares, (Opening Trade) Price per Share, and (Closing Trade) Price per Share.  As these scroll bars are changed, all necessary calculations are performed and the results are immediately displayed.

The Shares scroll bar is used to establish the number of stock shares to be used in all subsequent calculations.  The small button to the left of the share quantity can be used to change the precision of the scroll bar.  The button's label will indicate "R" for Round lots (100s/1000s) or "O" for Odd lots (1s/10s.) The maximum number of shares in a single trade is 30,000.  NOTE: With Trade Type set to Options, Shares should be set to reflect the number of shares that the Options contract controls.  Since Options contracts normally control 100 shares of the underlying stock, only Round lots can be entered.

The (Opening Trade) Price per Share scroll bar is used to enter the opening trade share price.  Clicking on the left/right arrows decreases or increases the share price by 1/8 of a dollar.  Clicking to the left/right of the scroll bar indicator decreases or increases the share price by one dollar. In addition, the scroll bar indicator can be dragged to any valid position. The maximum share price is 200 dollars.

The (Closing Trade) Price per Share scroll bar is used to enter the current or target share price.  Clicking on the left/right arrows decreases or increases the share price by 1/8 of a dollar.  Clicking to the left/right of the scroll bar indicator decreases or increases the share price by one dollar.  In addition, the scroll bar indicator can be dragged to any valid position. The maximum share price is 200 dollars.  Change displays the difference in share price between the (Opening Trade) Price per Share and the (Closing Trade) Price per Share.  The change percentage is also displayed.


Basic Calculations Performed

Entering the three primary stock values described above will enable Stock Partner to perform some basic calculations. The results of these calculations are described here, referring to their screen labels as displayed for Long, Short, and Option Trade Types.

Long Trade Type Calculations

Stock Cost is the purchase value of the shares based on the price indicated in (Opening Trade) Price per Share.

Actual/Estd. Commission is the actual or estimated  fee charged by a brokerage firm in order to buy the stock.  Stock Partner calculates this fee based on the share price, the number of shares, and Setup options.  This estimate can be overridden with the actual fee when the stock is purchased.

Total Purchase Cost is the Stock Cost value plus the commission cost.  This is the amount that the broker will debit from your account to purchase the stock.

Stock Value is the sale value of the stock shares based on the price indicated in (Closing Trade) Price per Share.

Actual/Estd. Commission is the actual or estimated  fee charged by a brokerage firm in order to sell the stock.  Stock Partner calculates this fee based on the share price, the number of shares, and Setup options.  This estimate can be overridden with the actual fee when the stock is sold.

Net Sales Value is the Stock Value minus the commission cost.  This is the amount that the broker will credit to your account after selling the stock.

PROFIT is the difference between the Net Sales Value amount and the Total Purchase Cost.  This value is the actual profit or loss on the stock trade after commissions.  Losses are displayed in red.

Short Trade Type Calculations

Short Sale Proceeds is the sale value of the "borrowed" stock shares based on the price indicated in (Opening Trade) Price per Share.

Actual/Estd. Commission is the actual or estimated  fee charged by a brokerage firm in order to sell the stock.  Stock Partner calculates this fee based on the share price, the number of shares, and Setup options.  This estimate can be overridden with the actual fee when the stock is sold.

Net Proceeds is the Short Sale Proceeds value minus  the commission cost.  This is the amount that the broker will record in your account as a liability or contra-asset.

Stock Value is the purchase cost of the stock shares based on the price indicated in (Closing Trade) Price per Share.

Actual/Estd. Commission is the actual or estimated  fee charged by a brokerage firm in order to buy the stock.  Stock Partner calculates this fee based on the share price, the number of shares, and Setup options.  This estimate can be overridden with the actual fee when the stock is purchased.

Short Covering Cost is the Stock Value minus the commission cost.  This is the amount that the broker will apply to your account to remove the liability incurred by the short sale.

PROFIT is the difference between the Net Proceeds of the short sale and the Short Covering Costs.  This value is the actual profit or loss on the stock trade after commissions.  Losses are displayed in red.

Option Trade Type Calculations

Option Cost is the purchase value of the Options based on the Options contract price indicated in (Opening Trade) Price per Share.

Actual/Estd. Commission is the actual or estimated fee charged by a brokerage firm in order to buy the Options.  Stock Partner calculates this fee based on the Options contract price, the number of shares controlled, and Setup options.  This estimate can be overridden with the actual fee when the Options are purchased.

Total Option Cost is the Option Cost value plus the commission cost.  This is the amount that the broker will debit from your account to purchase the Options.

Option Value is the sale value of the Options based on the Options contract price indicated in (Closing Trade) Price per Share.

Actual/Estd. Commission is the actual or estimated  fee charged by a brokerage firm in order to sell the Options.  Stock Partner calculates this fee based on the Options contract price, the number of shares controlled, and Setup options.  This estimate can be overridden with the actual fee when the Options are sold.

Net Sales Value is the sale value of the Options minus the commission cost.  This is the amount that the broker will credit to your account after selling the Options.

PROFIT is the difference between the Net Sales Value and the Total Option Cost .  This value is the actual profit or loss on the Option trade after commissions.  Losses are displayed in red.


Cost of Capital

This section allows "opportunity cost" and the time value of money to be taken into consideration by Stock Partner.  The Cost of Capital calculation uses daily compounding to approximate the return on a CD investment.  This section can also be used to approximate the finance cost associated with margin buying.  A margin loan, however, will generally be calculated using simple interest.

The Months value is calculated automatically if the Trade Status is Opened or Closed.  If the Trade Status is Evaluating, the Months value must be set manually.  The maximum time span supported by Stock Partner is 60 months (five years.)

Interest Rate should be set to reflect the annual rate currently quoted for CDs, money markets and similar cash investments.  The initial value of Interest Rate is determined by the default value in Setup.  The maximum interest rate supported by Stock Partner is 25 percent.

Cost of Capital Calculation Results

Committed Capital is the principal amount used in the Cost of Capital calculations.  For Long or Options Trade Types, the entire Stock Cost is considered to be Committed Capital.  For a Short Trade Type, the Short Sale Proceeds times the Short Sale Margin Requirement in the Setup screen is considered to be Committed Capital.

Cost of Capital is the foregone interest income or the margin financing costs associated with the investment of the Committed Capital.

Net Advantage is the PROFIT amount of the stock trade minus the Cost of Capital.  This figure shows the extent to which it was profitable to engage in the trade when all commission costs and capital costs are taken into consideration.


Dividends

Stock Partner can track actual stock dividends, and can estimate a stock's dividend income based on the stock's estimated annual dividend per share.  The Dividends section is only enabled with a Long Trade Type.

Actual dividends are viewed by pressing the Actual button.  Actual dividends are distributed to trades using the Distribute Dividends function in the Company Screen.

Estd. Annual DPS is used to enter the company's estimated annual dividend per share.  The maximum estimated annual dividend per share supported is 10 dollars.

Dividend Calculation Results

Actual Dividends is the sum of all previous actual dividends distributed to this trade.

Estd. Dividend Income appears for a trade with a Trade Status of Evaluating, and is the estimated dividend income expected over the time period specified in the Cost of Capital section.  For every three Months specified in Cost of Capital, one quarterly dividend will be calculated and added to Estd. Dividend Income.

Estd. Current Dividend appears for a trade with a Trade Status of Opened or Closed, and is the estimated dividend for the current quarter only.  (Do not estimate a dividend for the current quarter if the stock is "ex-dividend.")

Total Advantage is the Net Advantage plus Actual Dividends and Estd. Dividend Income.  This figure shows the extent to which it was profitable to engage in the stock trade when all commission costs, capital costs, and dividend income are all taken into consideration.


Updating the Portfolio

There are three methods by which an entire portfolio can be quickly updated:  Auto-Prompt, Process Clipboard Data, and Process a Data File.  Pressing the Update button in the Program Utilities section of the main calculations screen displays the Update Portfolio window which contains buttons to activate these three features.

Auto-Prompt provides a convenient method for updating a Stock Partner portfolio, and is especially useful when obtaining daily price quotes by telephone voice response services.  Once started, Auto-Prompt will present all company names for which a trade is present, one by one for updating.  NOTE: Since the share price for Closed trades cannot be updated, a company containing only Closed trades will be presented only if there is an associated Graph to update.

Current Price per Share shows the (Closing Trade) Price per Share previously recorded in the trade record.  Use the scroll bar to enter the current market price for the stock.

Pressing the Update button commits the update and causes the next company to be presented.

Pressing Skip does not update the current company, but causes the next company to be presented.

Pressing Quit at any time will end Auto-Prompt .

If there are any Options trades in the portfolio, Auto-Prompt will prompt for these individually after prompting for all companies with eligible stock trades.

Process Clipboard Data updates the Stock Partner portfolio with daily price quote data that has been copied into the Clipboard from another Windows application.  Any Windows communication program (such as Windows Terminal or Procomm+) can be used to access an on-line service such as DELPHI or a Bulletin Board that provides price quotes.  In addition, the major on-line services such as CompuServe now provide Windows interface/access software.

To copy data to the Clipboard, begin by accessing your on-line service and requesting price quotes for the stocks you wish to update.  These price quotes will appear on the screen.  Hold down the left mouse button and highlight all text containing price quotes (including any "garbage" such as column headings, etc.)  With the desired text highlighted, select the application's Edit pull-down menu and choose Copy (or Copy Text.)  The highlighted text has now been copied to the Clipboard.

Before processing Clipboard data for the first time, Stock Partner needs to know the starting positions for the Ticker Symbol and the (current/closing) Price per Share.  To quickly determine these starting positions, open the Windows Write or the Windows Notepad application.  Select the application's Edit pull-down menu and choose Paste.  Find a line that has recognizable quote data.  Use the cursor and arrow-keys to count the number of positions from the left margin to both the Ticker Symbol and (current/closing) Price per Share.

Return to Stock Partner's Update Portfolio window and press the Describe Format button under the Process Clipboard Data button.  Use the scroll bars in the Describe Clipboard Data Format window to enter the starting positions for the Ticker Symbol and the Price per Share, and press OK.  Although it may take some trial and error to achieve the desired results, the Clipboard data format will be saved for future use.  The price quote format for several popular services can also be set by pressing the button on which the service's name appears.

Pressing Process Clipboard Data causes Stock Partner to scan through all data in the Clipboard, matching Ticker Symbols found in the Clipboard data with Ticker Symbols found in the Stock Partner portfolio.  When a match occurs, several validity tests are performed.  After all Clipboard data has been scanned and tested, Stock Partner will report the results.  Press OK to bring up the Process Clipboard Data window in which applicable price quotes will be presented one by one for updating.  NOTE: Since the share price for Closed trades cannot be updated, a company containing only Closed trades will be presented only if there is an associated Graph to update.

Current Price per Share shows the (current/closing) Price per Share found in the price quote for the respective Ticker Symbol.  The scroll bar can be used to adjust the price if desired.

Pressing the Update button commits the update and causes the next valid Clipboard price quote to be presented.

Pressing Skip does not update the portfolio, but causes the next valid Clipboard price quote to be presented.

Pressing Quit at any time will end Process Clipboard Data .

If any companies in the Stock Partner portfolio had no valid match with any Clipboard data, Stock Partner will ask to prompt for these companies using Auto-Prompt, described above

Process a Data File is used to update the Stock Partner portfolio with price quote data contained in a comma or <tab> delimited ASCII data file.  Major on-line services such as Prodigy and America Online, and many Bulletin Boards support the "downloading" of these price quote data files.  Many different methods are used to download data files from another computer, so please follow the instructions provided by your service.

Before processing a data file for the first time, Stock Partner needs to know the number of fields in each record, the field location of the Ticker Symbol, and the field location of the (current/closing) Price per Share.  To quickly determine this information, open the Windows Write or the Windows Notepad application.  Select File from the application's pull-down menu and choose Open.  Use the Open dialog window to select a downloaded price quote file.  Count the number of fields (separated by a comma or <tab> character) in the first recognizable quote record.  Next, locate a recognizable Ticker Symbol and note the field position.  Finally, locate the current or closing Price per Share and note the field position.

Return to Stock Partner's Update Portfolio window.  Press the Describe Format button under the Process a Data File button.  Use the option buttons to set the values for Number of Fields in Each Record, Field Location of the Ticker Symbol, and the Field Location of the Price per Share and press OK.  Although it may take some trial and error to achieve the desired results, the data file format will be saved for future use.  The price quote data file format for several popular services can also be set by pressing the button on which the service's name appears.

Pressing Process a Data File opens a window in which the drive, the directory, and the name of the downloaded price quote file can be selected.  Pressing OK after selecting a file name (or double-clicking on the file name) causes Stock Partner to scan through all records in the data file, matching Ticker Symbols found in the data file with Ticker Symbols found in the Stock Partner portfolio.  When a match occurs, several validity tests are performed.  After all records in the data file have been scanned and tested, Stock Partner will report the results.  Press OK to bring up the Process a Data File window in which applicable price quotes will be presented one by one for updating.  NOTE: Since the share price for Closed trades cannot be updated, a company containing only Closed trades will be presented only if there is an associated Graph to update.

Current Price per Share shows the (current/closing) Price per Share found in the price quote record for the respective Ticker Symbol.  The scroll bar can be used to adjust the price if desired.

Pressing the Update button commits the update and causes the next valid price quote record to be presented.

Pressing Skip does not update the portfolio, but causes the next valid price quote record to be presented.

Pressing Quit at any time will end Process a Data File.

If any companies in the Stock Partner portfolio had no valid match with any price quote record, Stock Partner will ask to prompt for these companies using Auto-Prompt, described above


Creating Reports

Pressing the Reports button brings up Stock Partner's Reports window.  To ensure that Reports reflect the latest market prices, all trades should be updated before creating Reports.  Any of the three Update Portfolio methods can be used for this purpose.

Trades Available is a list of all trades in the Stock Partner portfolio.  Individual trades can be moved to the Trades Selected list by double-clicking on the trade identifier in the Trades Available list.  Each trade is coded with a prefix which identifies its current Trade Status, Trade Type, the date the trade was Opened or Closed, and the number of shares involved.  In the first letter of the prefix "E" stands for Evaluating, "O" stands for Opened, and "C" stands for Closed.  In the second letter of the prefix "L" stands for Long, "S" stands for Short, and "O" stands for Options.

The Automated Selection facility applies "boolean" logic to the selection of Trades for a Report.  This facility, while easy to use, is actually quite powerful and can answer a wide variety of questions regarding the performance of groups of Trades.

The Year Opened and Year Closed dropdown list boxes are used to select trades that were Opened or Closed in a particular year.  When "Any" is displayed, the respective list box has no effect.  When a year is displayed in the Year Opened or Year Closed list box, it acts a a filter and only Trades Opened or Closed in that year will be examined by the Automated Selection facility.  (The years contained in the list boxes are adjusted automatically to include the current year and the previous four years.)

The Company Name dropdown list box contains the names of all the companies present in Stock Partner's portfolio.  When "Any Company" is displayed, the list box has no effect.  When a company's name is displayed it acts as a filter and only Trades associated with that company are examined by the Automated Selection facility.

The Evaluate, Opened, and Closed check boxes are used to set the selection criteria with regard to a Trade's Trade Status.

The Long, Short, and Options check boxes are used to set the selection criteria with regard to a Trade's Trade Type.

The OR button causes the Trade Status and Trade Type selection criteria to be applied to the Available Trades list in a boolean OR condition, and causes the resulting selections to be moved to the Selected Trades list.  The OR selection is most useful when used with only one check box selected.  For example, to see all Opened Trades (regardless of Trade Type) simply check Opened and press OR.  If Long was also checked, the results would include all Trades that are either Opened or are Long Trades.

The AND button causes the Trade Status and Trade Type selection criteria to be applied to the Available Trades list in a boolean AND condition, and causes the resulting selections to be moved to the Selected Trades list.  The AND selection is most useful when used with multiple check boxes selected.  For example, to see only those Trades that are both Opened and Long, check Opened and check Long, then press AND.  To be selected with the AND button, a Trade must meet both of the selected criteria.  When used in combination with the company name dropdown list, the AND button can very quickly select, for example, all Open Option trades for General Motors.

The Include options allow additional detail to be included in a Report.

Cost of Capital will generate one line of financing information for each Trade in the Report.

Dividends will list the actual dividends tracked as well as the estimated dividend income for each Trade in the report that contains dividend information.

Pressing Summary will summarize the information associated with the Trades Selected, and present the results in a window.  This summary information can be printed if desired.

Pressing Print will bring up a window in which a personalized report title of up to 80 characters can be entered.  Pressing OK will then cause the Report to be created and sent to Print Manager for printing.

Pressing the Clear button will clear the Trades Selected list.

Pressing Exit will cancel all selections and close the Reports window.

In the 1040 Schedules B and D section, three buttons can be used to automatically select all Dividends that were paid, and all Trades that were Closed during a particular year.  The reports produced reflect the information required on the respective IRS forms.  The three buttons are labeled for the current year, last year, and the previous year respectively.  (These button labels will change automatically as the years pass.)


Company Screen

The Company Screen provides program features that handle company-oriented actions.  Included are Distribute Dividends, Delete Dividends, Stock Split, and Delete Entire Company.

The Distribute Dividends feature is used to enter actual dividends into Stock Partner.  Pressing this button brings up the Enter Dividend Data screen, which contains an input box for the Dividend Amount to Distribute, and a scroll bar with which to enter the Date of Dividend.  Enter the date and amount of your dividend check, then press OK.

The Distribute Dividends window will appear, in which the Dividend Amount to Distribute can be distributed to one or more Eligible Trades.  An Eligible Trade is an Open or Closed trade with a Long Trade Type.  To help ensure that the proper trade is selected, the Trade Status ("O" for Open and "C" for Closed,) the opening trade date, and the number of shares in the trade have all been added to the trade identifiers.  Eligible Trades become Selected Trades by double-clicking on the desired trade identifier in the list box.  Pressing OK will distribute the dividend to the Selected Trades based on the number of shares in each trade.  If the Add Note Entry box is checked, a Stock Note entry will be automatically created in the notes file for the company.  The results for each trade can be viewed by pressing the Actual button in the Dividends section of the main calculations screen.  Dividend payments that are distributed to multiple Trades will be recombined when printing the 1040 Schedule B Reports .

The Delete Dividends feature is used to remove dividend entries from Stock Partner.  The Delete Dividends screen contains a list of all dividend distributions made, and includes the date of the distribution, the amount distributed to the trade, and the trade identifier.  To delete a dividend, highlight the desired entry by clicking on the trade identifier in the list box, and then press Delete.  If OK is selected in the confirmation window, the dividend entry is deleted.  NOTE: Deleting dividends will not automatically remove a Stock Notes entry that may have been created automatically during the Dividend Distribution process.

The Stock Split button presents a window in which stock splits and reverse splits can be easily recorded.  An example of the stock split result is presented to help ensure that the proper split is selected.  It is a good idea to use the Diskette Get/Put function in Setup to back up your Stock Partner files before performing a stock split operation.

Type of Split contains two scroll bars and is used to establish the nature of the stock split.  If the terminology is confusing, remember that YOU GET X shares FOR Y shares OWNED.  Thus, a 2 FOR 1 stock split means that you will receive 2 shares for each share owned, and the Price per Share will be halved.  A reverse stock split is rare and results in a consolidation of the outstanding shares.  Thus, a 1 FOR 2 reverse split means that you will receive one share for every two shares owned, and the Price per Share will double.  Trades with Trade Type set to Options are unaffected by Stock Splits.

The Date of Split is used by Stock Partner to determine which graph data points will be adjusted for the split.  All graph data points dated on or before the Date of Split will be adjusted relative to the Type of Split indicated.  The graph data adjustment allows for a more meaningful assessment of the stock's share price movements over time.

Pressing OK causes a confirmation window to appear.  When confirmed, Stock Partner will update the Opening Trade information, Closing Trade information, and all graph data points dated on or before the Date of Split.  If the Add Note Entry box is checked, a Stock Note describing the split will automatically be placed in the Notes file for the selected company.

NOTE: Stock Partner will not allow a stock split that would violate program limitations regarding maximum number of shares and share prices.  In addition, the accuracy of the split calculations may falter when using extremely low share prices/quantities or certain Odd Lot combinations.

The Delete Entire Company button is used to remove all data associated with the selected company.  There is a detailed confirmation window, however, this feature should obviously be used with caution.


Making Graphs

The Graph button is used to create and display a graph of a company's stock price movements over time.  Up to two years of graph data can be stored.  Since only non-zero data points are plotted, graph data can be entered as seldom or as often as desired.  Unused, zero value data points will appear at the bottom of the graph to serve as a visual indication of the number of data points being omitted.

When a new graph is created, a window will appear prompting for the starting date of the graph.  Dates of up to 365 days before the current system date can be specified using the Starting Date scroll bar.  Pressing OK will bring up the new, empty graph.  Graph data can now be entered manually (see Enter Graph Data below) or automatically (see Update Portfolio.)

The red grid line (if present) is the break even point for all Open, Long trades of the company's stock.  NOTE: Opening Trade commissions and the estimated Closing Trade commissions are both included in the break even point calculation.

Stock Notes are represented as small buttons at the top of the graph corresponding to each Note's date.  By pressing these buttons, the respective Stock Notes information will be displayed on the screen.  High/Low  prices and Opening/Closing trade information will appear automatically as Note buttons.

The Enter Graph Data button opens a window in which dates and stock prices can be entered.

The Date of Record scroll bar is initially set to the current system date.  Any date between the graph's starting date and the current system date can be selected.  The Price per Share scroll bar is used to set the stock price corresponding to the Date of Record.  Pressing the small button under the stock price immediately sets Price per Share to the value of the (Closing Trade) Price per Share from the main screen.  When the desired date/price combination has been selected, press the Store this Date/Price button to store the values.  The process can then be repeated for another date.  When finished, press the Return to Graph button to return to the graph.  NOTE: No data is accepted for Saturdays and Sundays.

Adjust Graph Range is used to move the graph's starting date forward in time, allowing for more current entries to be tracked.  The New Graph Start Date scroll bar can be set to any date between the graph's original starting date and the current system date.  Press OK to establish the new starting date for the graph.  NOTE: This option should be used with caution.

The Delete Entire Graph button is used to remove all graph data for the selected company.  After confirming this selection, the graph data is deleted and control is returned to the main calculations screen.  NOTE: This option should be used with caution.

The Date Range scroll bar is used to select the date range displayed on the graph.  The graph's X axis is always presented as a 365 day range.  Pressing the right/left arrows will move the date range forward or backward by three months.  Pressing to the right/left of the scroll indicator will move the date range forward or backward by one year.

Pressing the Print button will cause the graph to be sent to Print Manager for printing.

Press Exit to return to the main screen.


Program Setup

The Setup window stores default information used in various Stock Partner calculations.

Type of Broker is used to determine rate structures in the algorithm that calculates the estimated commission costs.  Full Service brokers (Merrill Lynch, A.G. Edwards, etc.) charge considerably higher commissions than do Discount brokers (Fidelity, Schwab, etc.)  Increasingly popular are "Per Share" brokers who charge a fixed amount per share traded (and a hefty minimum.)  When the Per Share option is selected, the small scroll bar will allow entry of the per share fee.

Minimum Commission Charge should be set to the minimum commission charged by the Broker for a stock trade.  The highest minimum commission charge supported by Stock Partner is 100 dollars.

Miscellaneous Fees per Trade should be set to reflect any additional fees charged by the broker for each trade.  Almost all brokers charge a few dollars per trade for postage and handling, processing, etc.  This fee is usually listed separately on trade confirmation notices.  The highest miscellaneous fee per trade supported by Stock Partner is 100 dollars.

Short Trade Margin Requirement allows Stock Partner to compute Committed Capital in the Cost of Capital section based on this fraction of the Short Sale Proceeds.  Most brokers require that cash or equities worth 50 percent of the Short Sale Proceeds be reserved in your account for the duration the Short trade.  Margin "calls" are not addressed by Stock Partner.

Default Interest Rate should be set to reflect the annual rate currently quoted for CDs, money markets and similar low-risk investments.  The maximum interest rate supported by Stock Partner is 15 percent.

Password Protection allows Stock Partner to prompt the user for a password each time the program is started.  Whenever the checkbox is changed from unchecked to checked, the New Password window will appear.  Passwords must be at least three characters long.  To disable Password Protection simply click on the checkbox to uncheck it.  Once Password Protection has been enabled or disabled, pressing Setup's Cancel button will not cancel the change.  NOTE: Stock Partner's password protection does not encrypt the data and should not be considered a primary source of data security.  The intention is simply to keep out co-workers, friends, etc.

Diskette Get and Put provides a simple way to back up and restore your Stock Partner data, or, to "shuttle" Stock Partner data between your home and office computers.  Pressing the Diskette Get and Put button will bring up the Diskette Get and Put window.

Select Diskette is used to point Stock Partner to the proper diskette drive for the Get Data or Put Data operation.

The Get Data button instructs Stock Partner to search the selected diskette drive for the directory \SP41, and to copy the Stock Partner data found there to the hard disk directory containing the Stock Partner program.  NOTE: all Stock Partner data in the hard disk directory will be overwritten with the Stock Partner data found in the \SP41 directory on the selected diskette drive.

The Put Data button instructs Stock Partner to copy all of the Stock Partner data found in the hard disk directory  to the directory \SP41 on the selected diskette drive.  If the directory \SP41 is not found on the selected diskette drive, it will be created automatically.  NOTE: all Stock Partner data in the \SP41 directory on the selected diskette drive will be overwritten with the Stock Partner data found in the hard disk directory.

The Clear local data, exit checkbox is used when you wish to erase all Stock Partner data found in the hard disk directory upon the successful completion of the Put Data operation.  NOTE: since all Stock Partner data found in the hard disk directory will be erased, this option should be used with caution.

The File Dates button is used to determine which sets of data files are more recent.  Last modification date/time for the file SP41.TRD (the trade file) is presented for both the Hard Disk data and the Selected Diskette data.

The Cancel button causes the Diskette Get and Put window to disappear, and returns control to the Program Setup window.


Using Stock Notes

Stock Notes are "index cards" that can be used to associate a date with news, broker opinions, and other events pertaining to the selected company.  These Notes will automatically appear as small buttons at the  top of a stock's Graph, allowing you to see the effect of the news on the stock price or to gauge the reliability of a broker's recommendations.

Press New to begin entering a new note record.  There is no predefined format for this information and up to 150 characters can be entered per note.  The note date defaults to the system date and can be adjusted by using the adjacent scroll bar.

Press Save to commit note adds and changes to the Notes file.

Press Delete to remove a note from the Notes file.

The Note X of X scroll bar is used to browse through all of the Notes for the selected company.

Pressing OK will commit any unsaved note information to the Notes file and return to the main screen.

Pressing Cancel will return immediately to the main screen, discarding any unsaved changes.


Stock Ticker

Stock Ticker is a cute diversion that simulates the tickers used on the major trading floors.

The small button to the left of the Stock Ticker toggles the Stock Ticker on and off.  When the Stock Ticker is on, the trading symbols for trades marked as Evaluating or Opened are continuously scrolled across the Stock Ticker box along with the (Closing Trade) Price per Share.  Trades having a Trade Type set to Options have a ".O" appended to the ticker symbol to distinguish them from a stock trade for the same company.

NOTE: One of the three Update Portfolio methods should be used first to make sure that the Stock Ticker prices reflect the current market price.


Overview

Stock Partner can be used as a "desktop calculator" to evaluate potential stock trades, or as a comprehensive tool for managing an entire portfolio of stocks.

The main Calculations Screen provides information regarding an individual stock trade.  To evaluate the profitability of a stock trade simply enter the number of shares, the opening price per share, and the closing (or current) price per share.  Broker commissions are automatically estimated, and Stock Partner's calculations instantly produce a detailed profit/loss assessment of the trade.

Other program features such as stock graphs and note entries can track information pertaining to an entire company.  When an individual stock trade is selected, all data for the respective company is selected as well.

Using Stock Partner is easy!  Begin by setting the appropriate broker type and commission information in the Setup screen.

Next, add companies and trades by pressing the New button under Selected Trade.  Give each trade a descriptive name such as "my rising star," "bought on weakness," "David's pick," etc.  For each trade, Enter Values for the number of shares, the opening trade (purchase) price per share, and the closing trade (or current) price per share.  Also, indicate the appropriate Trade Status and Trade Type for each trade.

The Cost of Capital is used to calculate the "opportunity cost" of not investing in safer alternatives (such as CDs,) or to calculate the financing costs associated with a margin loan.  Estimated Dividend income for the current quarter can be calculated by entering the company's estimated annual dividend per share.

A portfolio has now been entered and Reports can be created.

Press the Graph button to establish a new stock graph for the company associated with the currently selected trade.  After selecting the graph's starting date, an empty graph will be presented.  Use the graph's Enter Graph Data button to enter historical date/price data points.

On a daily (or weekly) basis, any of the three Update Portfolio methods can be used to quickly update price data for the entire portfolio, including graphs.  Auto-Prompt is best used with telephone voice response systems, Process Clipboard Data allows cut-and-paste operations from Windows communications programs, and Process a Data File can process "downloaded" price quote data files.

Stock Partner's Stock Notes feature provides a way to "remember" important dated information such as news items, earnings reports, broker recommendations, etc.  Stock Notes are plotted onto a company's graph so that the effect of the event on the stock price can be easily seen.

When dividend checks are received, the check amount can be distributed back to the trades that actually generated the dividend income.  Tracking dividends by trade (rather than by company aggregate) allows the profitability of the trade to be assessed more realistically.  The Distribute Dividends button in the Company Screen handles this process.

There are many other useful facilities in Stock Partner.  Continue browsing this Help file for more information.


Disclaimer, Trademarks

Users of Stock Partner must accept this disclaimer of warranty:

"Stock Partner is supplied as is.  The author disclaims all warranties, expressed or implied, including, without limitation, the warranties of merchantability and of fitness for any purpose.  The author assumes no liability for damages, direct or consequential, which may result from the use of Stock Partner."

All brand and product names mentioned in Stock Partner are trademarks or registered trademarks of their respective companies.