Re: What's the proper accounting way to handle a stock split?

[Michael Gerdts]

On Mon, Apr 24, 2000 at 12:05:55AM -0500, Christopher Browne wrote:
> So, if RHAT splits 2 ways on April 1, 1999, and then again splits 3 ways
> on July 1, 2000, there would be two entries:
>    ("RHAT" "1999-04-01" 2)
>    ("RHAT" "2000-07-01" 3)

I think that you need to be able to handle fractions.  This will allow for
reverse splits, and odd ones like 3 for 2.  A float could get messy for
things like 1 for 3.

Also, with reverse splits you can end up being forced to sell a share or
two.  For example, in a 1 for 3 split, if you have 100 shares, you will end
up with 33 shares and the value of one old share in cash.

Mike

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