Stocks and Shares

Stocks, Shares and Share Dividend Management

The terms ‘Stocks’ and ‘Shares’ are often used interchangeably, but in this context, they have distinct meanings. Here we refer to Stocks as companies, and Shares as units of value within the company. Generally we would obtain Stocks via a Stock Broker and purchase or sell shares in the company.

Setting up Stocks and Shares is a two-step process.

1. First we create the Investment Account to represent your stock exchange or broker. e.g. HKEX or NASDAQ.
2. We add the initial Shares information to our Investment Account.

Any subsequent share transactions are recorded under the company in the Stock Portfolio view.

1. Fixed Amount / NET is used in MMEX.
2. NET_BUY: Total cost including commission = GROSS_BUY + COMMISSION.
3. NET_SALE: Total received after commission = GROSS_SALE - COMMISSION.

Any transaction associated with our cash accounts is settled through the Investment Account’s Cash Ledger.

Creating a Stock Portfolio for our Stocks

In order to use Stocks and Shares in MMEX, we need to create an account of type: Investment.

The name for this account would generally be the name of the stock exchange or Stock Broker. In our example we have selected the stock exchange being called HKEX.

This account would appear in the Navigator under the heading Stock Portfolios. When we expand the Stock Portfolios branch in the Navigator, we would see our newly created Stock Portfolio (Investment) account.

Selecting the new HKEX account opens the Stock Portfolio view.

Adding Stocks(Initial purchase) to our Stock Portfolio

We refer to Stocks as the companies that we have purchased shares.

Let us say that we purchase shares in two companies from our stock exchange HKEX, we would create new entries in the stock portfolio view for our companies.

As an initial entry for each company we would supply the following:

Company Name

This will also allow us to track different LOTs for the same stock symbol.

Example: Alpha Corporation

Stock Symbol

APC is the Stock Exchange code, and AX represents the Stock Exchange where you can obtain the current share value information.
Example: APC.AX

Share Number

The initial number of shares

Share Price

This is the cost per share (gross price)

Commission

This is generally the remaining value for incomplete shares

Example: Purchase of 100 shares at $40 per share, it will cost us $4,050 and $50 as commission, and net buy price is $40.5 per share

Account

This would be the associated Investment account that was initially created, it would decrease -$4,050

Adding Subsequent Share Entries to our Stock

It’s recommended to add a new LOT for each subsequent purchase. Purchase or sale of shares is achieved by accessing the stock entry in the Stock Portfolio view and adjusting trade.

Selling Shares in Our Stock Portfolio

Sale of shares is achieved by accessing the stock entry in the Stock Portfolio view and adjusting trade.

Commission

This is generally the remaining value for incomplete shares

Example: Sale of 100 shares at $55.15 per share will give us $5,415 with $100 as commission

Account

This would be the associated Investment acount that was initially created, it would increase +$5,415

Managing Your Stock Portfolio Account

Our Stock Portfolio Account now displays a summary of the Stocks we have.

• The stock exchange or broker name is used to define the Stock Investment name.
• The companies we buy shares from become the share name

Example

Alpha Corp and Beta Corp stocks are tracked via Yahoo Finance. Here we have hidden various headings as these become meaningless in this view.

Note: Initial share price is not listed in this view. This is because the share price becomes meaningless in a summary view as each purchase will generally have a different share price.

Stock Transaction List View

When we have added shares to our account we can see the associated share transactions using the View Transactions

Adding Dividends to our Shares

Accessing our investment account, we can add ordinary transactions to it

• A share dividend transaction becomes a normal transaction.
• The same rules for Income and Expense apply to share accounts when a transaction is created in the Account View.
• Actual commissions paid to a stock broker should also be recorded as a separate transaction.

V2 changes and migration

1. Simplify the hierarchy by organizing it as Investment Account → Stocks (or LOTs) and deprecating the Shares Account.
2. Add a Cash Ledger for each Investment Account to track its cash flow.
3. The Legacy Shares Account will be treated as a sibling of the Cash Ledger, and you can update its transactions in the Investment Account to complete the migration.