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Share Consolidation

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ADrunkenMarcus
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Share Consolidation

#63286

Postby ADrunkenMarcus » June 27th, 2017, 8:00 pm

I bought Spirax Sarco Engineering in March 2015. Taken together with purchase costs, my book cost comes to £32.67 a share. However, the company paid a large special dividend later in 2015 and undertook a 27 for 28 share consolidation. For performance monitoring purposes (nothing to do with tax or the like), do I adjust my book cost per share to 27/28ths? If so, my £32.67 would become £31.50 a share.

Thanks.

Best wishes


Mark.

tjh290633
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Re: Share Consolidation

#63328

Postby tjh290633 » June 27th, 2017, 11:22 pm

ADrunkenMarcus wrote:I bought Spirax Sarco Engineering in March 2015. Taken together with purchase costs, my book cost comes to £32.67 a share. However, the company paid a large special dividend later in 2015 and undertook a 27 for 28 share consolidation. For performance monitoring purposes (nothing to do with tax or the like), do I adjust my book cost per share to 27/28ths? If so, my £32.67 would become £31.50 a share.

Mark.


I treat this as a disposal and adjust the cost of the holding by 27/28. Because you now have fewer shares, the book cost per share should be little changed.

TJH

ADrunkenMarcus
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Re: Share Consolidation

#64294

Postby ADrunkenMarcus » July 2nd, 2017, 11:10 am

Cheers TJH.

I have amended on the worksheet which contains the complete record of my holding, from purchase to date, including share consolidations and dividends received.

The worksheet which records each holding's total return and CAGR (assuming one share of each held from purchase) is untouched with the book cost the same.

Best wishes

Mark.


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