Page 9 C H A P T E R 4 B U Y I N G A N D S E L L I N G S E C U R I T I E S This option is not simply for stocks. You may record any security which is purchased on a share basis. This means that your security portfolios may contain recorded purchases of stocks, mutual funds, options, limited partnerships, etc. When you select the Update Security Holdings option from the main menu the portfolio update menu will appear listing the following options. ÕÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ͸ ³ SECURITY UPDATE MENU ³ ÆÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ͵ ³ BUY A NEW SECURITY ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ BUY AN EXISTING SECURITY³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ SELL A SECURITY ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ RECORD NEW DIVIDEND RATE³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ RECORD STOCK SPLIT ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ RETURN TO MAIN MENU ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ Table 4-1 As with most menus you choose an option using the arrow keys on your keyboard and execute the highlighted option by pressing the enter key. BUY A NEW SECURITY This option is used to record the purchase of a security which you have not previously entered into your portfolio data base. You should be aware that you may also use this option simply to record the name of a security you wish to keep track of using the program's charting capabilities. When you execute this option a data entry screen will appear requesting that you enter the ticker symbol (up to 10 characters) and name of the security (up to 20 characters) you have purchased. If the security has no ticker symbol, simply make one up being sure that it doesn't conflict with any listed ticker symbols (if you enter a number as one of the four characters it will not conflict with any listed ticker symbol). Once you have entered both the ticker symbol and name of the security you have purchased, you will be asked to verify your entries. Enter Y if they are correct or N if you wish to correct a mistake. (See Appendix A for further information on ticker symbols). Page 10 After you have successfully entered the ticker symbol and name, the "PURCHASE FOR WHICH FOLIO ?", listing all existing portfolios, will appear requesting that you select the portfolio which you have purchased this security for. If you have not previously created a portfolio, this screen will not appear and your security purchase will be recorded in the default (Main) portfolio. After selecting the portfolio, a second data entry screen will appear and you will be asked to enter purchase information as shown in Table 4-2. ÕÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÑÍÍÍÍÍÍÍÍÍÍÍÑÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ͸ ³ DATA REQUESTED ³ EXAMPLE ³ DESCRIPTION ³ ÆÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍØÍÍÍÍÍÍÍÍÍÍÍØÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ͵ ³ Date Purchased ³ 12/21/87 ³ Digital month ³ ³ ³ ³ Digital day-of-month ³ ³ ³ ³ Two digit year ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Total Cost ³ 2851.24 ³ Total cost including ³ ³ ³ ³ commission. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Commission Paid ³ 145.24 ³ Brokerage commission paid. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Number of Shares³ 200 ³ Number of shares purchased.³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Indicated ³ 0.75 ³ Indicated dividend per ³ ³ Dividend ³ ³ share (0 if none). ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ Table 4-2 If you have not actually purchased shares of a security but wish to register its name so that prices may be tracked using the programs charting capabilities, you should enter 0's (zeros) for the total cost, commission paid, and number of shares purchased. BUY AN EXISTING SECURITY You should select this option to record the purchase of additional shares of a security which is already recorded in your portfolio data base. Examples of this include purchase of shares through reinvested dividends, purchase of additional shares of a stock which you currently own, and purchase of shares after having recorded its name for tracking purposes (purchase of zero shares previously recorded). After selecting this option, the "PURCHASE ADDITIONAL SHARES OF" menu appears listing all securities which you have previously entered into your portfolio data base. Select the security you wish to record a purchase for from this menu. After selecting the security, the "BUY FOR WHICH FOLIO ?" menu will appear and you will be able to select the portfolio for which you are recording this purchase. Again, if you have not created any Page 11 portfolios, this screen will not appear and your purchase will automatically be recorded in the default portfolio. Once you have selected one of the listed portfolios, you are requested to enter the purchase date, total cost, commission paid, number of shares purchased, and indicated dividend. This data is entered as shown in Table 4-2. SELL A SECURITY This option is used to record the sale of shares in a security which you currently own. The system does not allow you to sell more shares of a given security than you currently own. After selecting this option, the "SELL SHARES OF" menu appears listing all securities which you have previously entered into your portfolio data base. You select the security you have sold from this menu. If the security you have selected is held in more than one portfolio, the "WHICH PORTFOLIO ?" menu will appear listing only those portfolios in which the selected security is held. Select the portfolio from which you wish to sell the security. Once you have selected a security and portfolio, the sell shares data entry screen will appear. You will be requested to enter the sales information as shown in Table 4-3. ÕÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÑÍÍÍÍÍÍÍÍÍÍÍÑÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ͸ ³ DATA REQUESTED ³ EXAMPLE ³ DESCRIPTION ³ ÆÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍØÍÍÍÍÍÍÍÍÍÍÍØÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ͵ ³ Sales Date ³ 10/22/89 ³ Digital month ³ ³ ³ ³ Digital day-of-month ³ ³ ³ ³ Two digit year ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Gross Proceeds ³ 3878.55 ³ Gross sales amount ³ ³ ³ ³ including commission. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Commission Paid ³ 124.70 ³ The brokerage commission ³ ³ ³ ³ paid. This is subtracted ³ ³ ³ ³ from the gross proceeds ³ ³ ³ ³ to obtain net proceeds. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Number of Shares³ 200 ³ The number of shares sold.³ ³ Sold ³ ³ This cannot exceed the ³ ³ ³ ³ number of shares you own. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ Table 4-3 If you attempt to sell more shares than you own in the selected portfolio, an error message will be displayed listing the maximum number of shares which may be sold from the selected portfolio. Page 12 The OWL Personal Portfolio Manager defaults to a first-in-first-out (FIFO) accounting system. This means that for computation of capital gains and losses, the system assumes that the when you sell shares in a security, you sell your oldest shares first and your most recently acquired shares last. If you have purchased your shares in multiple lots, and can specifically identify which shares have been sold, then you may override the default FIFO accounting and select the specific shares sold by purchase lot. RECORD NEW DIVIDEND RATE This option is used to update the indicated dividend per share of securities held in your portfolio. After selecting this option, the "UPDATE DIVIDEND OF ?" menu appears listing all securities in your portfolio data base. Select the appropriate security as you would with any menu. Once you have selected a security, the Dividend Rate Data Entry screen appears listing the current dividend rate and requests that you enter the new dividend rate. Dividend rates are entered as the dividend amount per share per year. The system automatically updates the indicated dividend rate in all portfolios in which the security is held. RECORD STOCK SPLIT This option is used to update the number of shares, share prices, and indicated dividend per share when a stock split occurs. After selecting this option, the "RECORD STOCK SPLIT FOR" menu appears listing all securities currently in your portfolio. Select the appropriate security from this screen. Once you have selected a security, the Split Rate Data Entry screen is displayed requesting that you enter the date of the stock split and the split rate in the form X for Y. Valid examples include: 3 for 2 1.05 for 1 2 for 1 The system then automatically updates your portfolio to reflect the stock split. Note that transactions which occured after the date of the stock split are not altered. For example, for a 2 for 1 stock split the quantities of all shares purchased and sold prior to recording the split are doubled, current and historical share prices are halved, and the recorded dividend per share is halved. You should be aware that after recording a stock split, transaction reports listing numbers of shares will be in terms of post-split shares and will therefore not match the number of shares actually purchased or sold prior to the announced stock split.