How to enter a mandatory stock exchange excess cash transaction

Posted by BW on March 16, 2007, 8:59 am

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Forgive the subject title, I'm not sure what to call the transaction. I
have an Ameritrade account that held 30 shares of a stock. The company was
merged with another company. Ameritrade downloaded transactions show
a "Mandatory Exchange" transaction, a reorganization fee transaction for
$20, and a transaction for $9.35 called "Cash in lieu of fractional
shares". Quicken popped up a dialog box asking if the new security was
already in quicken as an existing security with a list to pick from. I
selected the existing security then accepted the transactions. Here is the
list of transactions from the Ameritrade site:
01/31/2007 14:59:46 MANDATORY REORGANIZATION FEE -20.00 -$20.00
01/31/2007 14:59:49 MANDATORY - EXCHANGE (STXN) 0.00 -$20.00
01/31/2007 14:59:49 MANDATORY - EXCHANGE (HSTX) 0.00 -$20.00
01/31/2007 22:43:40 MONEY MARKET INTEREST (MMDA1) 0.00 -$20.00
02/01/2007 04:57:07 MONEY MARKET REDEMPTION (MMDA1) 0.00 -$20.00
02/01/2007 04:57:07 MONEY MARKET REDEMPTION 20.00 $0.00
02/05/2007 10:06:24 CASH IN LIEU OF FRACTIONAL SHARES (HSTX) 9.35 $9.35

02/06/2007 03:23:56 MONEY MARKET PURCHASE -9.35 $0.00

My Ameritrade account in quicken has an associated Ameritrade-cash account.
Quicken placed a short sell transaction in the Ameritrade account when I
accepted the transaction:
1/31/07 ShtSell STXN 30 shares of STXN
I didn't short sell anything.

How should these transactions be entered in the Ameritrade and
Ameritrade-cash accounts, especially the fractional shares transaction?

Also, is there a way to remove the transactions I already accepted and
redownload them?

Posted by Bob L. on March 16, 2007, 12:10 pm

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* BW wrote:

> Forgive the subject title, I'm not sure what to call the transaction. I

> have an Ameritrade account that held 30 shares of a stock. The company was

> merged with another company. Ameritrade downloaded transactions show

> a "Mandatory Exchange" transaction, a reorganization fee transaction for

> $20, and a transaction for $9.35 called "Cash in lieu of fractional

> shares". Quicken popped up a dialog box asking if the new security was

> already in quicken as an existing security with a list to pick from. I

> selected the existing security then accepted the transactions. Here is the

> list of transactions from the Ameritrade site:

> 01/31/2007 14:59:46 MANDATORY REORGANIZATION FEE -20.00 -$20.00

> 01/31/2007 14:59:49 MANDATORY - EXCHANGE (STXN) 0.00 -$20.00

> 01/31/2007 14:59:49 MANDATORY - EXCHANGE (HSTX) 0.00 -$20.00

> 01/31/2007 22:43:40 MONEY MARKET INTEREST (MMDA1) 0.00 -$20.00

> 02/01/2007 04:57:07 MONEY MARKET REDEMPTION (MMDA1) 0.00 -$20.00

> 02/01/2007 04:57:07 MONEY MARKET REDEMPTION 20.00 $0.00

> 02/05/2007 10:06:24 CASH IN LIEU OF FRACTIONAL SHARES (HSTX) 9.35 $9.35

> 02/06/2007 03:23:56 MONEY MARKET PURCHASE -9.35 $0.00

> My Ameritrade account in quicken has an associated Ameritrade-cash account.

> Quicken placed a short sell transaction in the Ameritrade account when I

> accepted the transaction:

> 1/31/07 ShtSell STXN 30 shares of STXN

> I didn't short sell anything.

> How should these transactions be entered in the Ameritrade and

> Ameritrade-cash accounts, especially the fractional shares transaction?

> Also, is there a way to remove the transactions I already accepted and

> redownload them?

I find it best to manually enter transactions of this type. Therefore I
recommend deleting the recent transactions. Then manually enter what
happened. From what I can tell, you need to just enter a "Corporate
Acquisition" Transaction (Enter Transaction>Corporate acquisition). It
will lead you through that. When completed, however, you will have a
fractional number (less than one) of shares in the new company. Enter a
sell transaction for these fractional shares with a proceeds value of
9.35 (This is the cash in lieu they talk about). Then purchase the
money fund security with the 9.35.

If you've done it right you should balance out the next time you download.

Good Luck!
Bob L.

Posted by BW on March 20, 2007, 5:53 pm

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Bob L. wrote:

> * BW wrote:

>> Forgive the subject title, I'm not sure what to call the transaction. I

>> have an Ameritrade account that held 30 shares of a stock. The company

>> was

>> merged with another company. Ameritrade downloaded transactions show

>> a "Mandatory Exchange" transaction, a reorganization fee transaction for

>> $20, and a transaction for $9.35 called "Cash in lieu of fractional

>> shares". Quicken popped up a dialog box asking if the new security was

>> already in quicken as an existing security with a list to pick from. I

>> selected the existing security then accepted the transactions. Here is

>> the list of transactions from the Ameritrade site:

>> 01/31/2007 14:59:46 MANDATORY REORGANIZATION FEE -20.00 -$20.00

>> 01/31/2007 14:59:49 MANDATORY - EXCHANGE (STXN) 0.00 -$20.00

>> 01/31/2007 14:59:49 MANDATORY - EXCHANGE (HSTX) 0.00 -$20.00

>> 01/31/2007 22:43:40 MONEY MARKET INTEREST (MMDA1) 0.00 -$20.00

>> 02/01/2007 04:57:07 MONEY MARKET REDEMPTION (MMDA1) 0.00 -$20.00

>> 02/01/2007 04:57:07 MONEY MARKET REDEMPTION 20.00 $0.00

>> 02/05/2007 10:06:24 CASH IN LIEU OF FRACTIONAL SHARES (HSTX) 9.35

>> $9.35

>> 02/06/2007 03:23:56 MONEY MARKET PURCHASE -9.35 $0.00

>> My Ameritrade account in quicken has an associated Ameritrade-cash

>> account. Quicken placed a short sell transaction in the Ameritrade

>> account when I accepted the transaction:

>> 1/31/07 ShtSell STXN 30 shares of STXN

>> I didn't short sell anything.

>> How should these transactions be entered in the Ameritrade and

>> Ameritrade-cash accounts, especially the fractional shares transaction?

>> Also, is there a way to remove the transactions I already accepted and

>> redownload them?

> I find it best to manually enter transactions of this type. Therefore I

> recommend deleting the recent transactions. Then manually enter what

> happened. From what I can tell, you need to just enter a "Corporate

> Acquisition" Transaction (Enter Transaction>Corporate acquisition). It

> will lead you through that. When completed, however, you will have a

> fractional number (less than one) of shares in the new company. Enter a

> sell transaction for these fractional shares with a proceeds value of

> 9.35 (This is the cash in lieu they talk about). Then purchase the

> money fund security with the 9.35.

> If you've done it right you should balance out the next time you download.

> Good Luck!

> Bob L.

Thanks, I'll try it!