Dividend transaction editing, reverse split algorithms incorrect
Yahoo needs to allow users to modify Dividend transactions and here is why: In Yahoo portfolios, it is possible to adjust buy/sell transactions, but it is not possible to adjust dividend transactions. On a reverse stock split, Yahoo adjusts the number of shares receiving the dividends by dividing the share count by 2 post reverse split (correct action) and increase the share price by 2 (correct action), but it also adjusts the share count pre-split thereby reducing the share count by half (correct action) but the Yahoo algorithm fails to INCREASE the dollar amount of the dividend by a factor of 2 in the case of a 1 for 2 reverse split. The outcome of this error is to reduce the dividend payment presplit hence, by corollary, reduce the total return of the investment over potentially a number of years. This misleads the investor and could potentially have significant tax implications. An example of the scenario is the ticker GLAD who recently had a 1 for 2 reverse split. If Yahoo can’t get the algorithm correct, at least allow the user to edit dividend transactions in order to rectify the algorithmic errors.
vincent bologna
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