Download FIRST DOLLAR USER GUIDE v3.20

Chapter 5
5.6
Advanced Transaction Options
5.6.1 How are Other Transactions Processed?
The following table illustrates how Users can account for the variety of
corporate actions (eg Code Changes) that will affect any group of shares
held for a period of time.
OTHER TRANSACTION
TYPES
No Deposit
Non Cash Deposits
You will usually need to enter
a balancing CASH DEPOSIT
TRANSACTION to ensure
that your account cash
balance is not negative
Rights Issue
We have plans to provide
details about a RIGHTS
ISSUE as part of the standard
First Dollar™ download
service.
USER GUIDE v3207.doc
DATA REQUIREMENTS
If you do not create a DEPOSIT Transaction when you first set
up a Portfolio in First Dollar™, that Portfolio File may be
established with a zero cash balance ($0.00). If a PURCHASE
[or SALE] transaction is added to an account before a
DEPOSIT has been made, the Portfolio may be treated as if it
had been set up on a margin basis.
This could have a dramatic effect on the Portfolio Performance
and even cause problems in calculating the returns. If no actual
money has been used in order to establish an entitlement to the
benefits of a particular transaction or Portfolio, the investment
returns can be infinite (both ways!).
In practice, most brokers and financial advisers require a
DEPOSIT in cash or shares to set up an account. This will be
the starting point for measuring your investment performance
and financial returns. If you make a Deposit in shares from
another source see “Non Cash Deposits”.
If you are making a DEPOSIT into an existing First Dollar™
Portfolio of shares/options/funds from another source, or shares
or securities that someone has given to you, you can enter the
transactions with any transaction date you choose.
Alternatively you can enter the shares into the First Dollar™
account as a new PURCHASE based on a particular book price
(eg the price you paid) on a date of your choice. You can also
use the “Check Price” function (Audit Tools > Check Price) to
find out what the price was on the date that you have chosen
and use that date and that price for the purposes of your
First Dollar™ analysis.
A RIGHTS ISSUE can be treated as a PURCHASE of a
NUMBER of Shares/Units of a particular STOCK or FUND
proportional to the existing NUMBER of shares of that STOCK
held in that Portfolio at the Ex Rights (XR) Date of that Rights
Issue.
If the RIGHTS ISSUE is listed, then for the period of the listing,
you may be deemed to own the proportionate number of
RIGHTS shown. If you do not subscribe to the Rights Issue, you
will only account for it (ie enter a transaction) if you have sold
the Rights Entitlement, in which case a Purchase of the XR
Code for nil cost and a standard SALE transaction should
deliver the correct result.
Chapter 6 describes how your First Dollar Download includes
Asset Prices, Dividends, Distributions and other Corporate
Actions for thousands of listed securities and Managed Funds.
45