I’m confused

Google Share Split

Shouldn't Google's recent share split (3 April 2014) be reflected automatically in my portfolio?

At the moment Sharesight is just showing that the holding name has changed from GOOG to GOOGL and the value has halved.
4 people have
this question
+1
Reply
  • Hi Geoff,

    The Google share split was unfortunately a little more complex than a standard share split and not something that our corporate action processing was able to fully automate.

    The existing Google shares now trade under the new GOOGL share code. As you have seen this code change has taken effect, so your existing Google share holding will now be under the GOOGL share code in Sharesight.

    The new Class C shares now trade under the old GOOG share code. Sharesight does not currently automatically handle events where shares are issued under a different share code. To make this adjustment in Sharesight, you will need to record a new holding of GOOG and make a cost base adjustment against your current GOOGL holding, as per a demerger. There is some more detailed information about how to do this in the following forum topic: https://getsatisfaction.com/sharesigh...

    Note that any unhandled events should be noted under the Corporate Actions in the right sidebar on the holding page, although in some cases we don't have a lot of information available in our data feed either.
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. kidding, amused, unsure, silly happy, confident, thankful, excited sad, anxious, confused, frustrated indifferent, undecided, unconcerned

  • I’m happy
    Can you confirm that the 2015 NZ FIF calculation will be correct if we do per the link https://getsatisfaction.com/sharesigh...

    The cost-price-adjustment (50% of cost) will be correct but if we "purchase" the new holding at 50% of the original cost, won't this show a huge capital gain in the 2015 FIF year. Sorry if I have got my understanding incorrect.
    • Hi Guy,

      Yes I believe so.

      The FDR method calculates 5% of the opening balance, this is fine as only the original shares were held at the start of the year and the cost price unchanged as at 1 April.

      The CV method looks at the total gains over the period, again this should be correct as the report will calculate the capital gain + dividends for each holding. On the original holding the adjust cost price 'gain' goes to offset the downward price movement. Recording the new holding as a opening balance or buy trade does not in itself result in any capital gain, rather the gain is the difference in value between the start and end of the period.

      Disclaimer: Please check with your adviser if you are unsure about the correct tax treatment for your situation. The above does not constitute specific taxation advice and should not be relied upon as such (I am not a qualified adviser).
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. kidding, amused, unsure, silly happy, confident, thankful, excited sad, anxious, confused, frustrated indifferent, undecided, unconcerned

  • hi,

    i am having trouble getting my head around recording the Google stock split.

    i have adjusted my cost base for GOOGL on 3/4/14 which it recorded as a massive capital loss. i recorded myself as buying GOOG on the 3/4/14. i sold all my GOOG shares in june and recorded another capital loss!

    could you show an example of how to handle it?

    thanks!
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. kidding, amused, unsure, silly happy, confident, thankful, excited sad, anxious, confused, frustrated indifferent, undecided, unconcerned

  • This reply was removed on 2014-08-14.
    see the change log
  • Hi Angelo, 

    Google spilt is a little confusing. Here is a link to their investor site:https://investor.google.com/financial... 

    The original share you own was GOOG.  On 02/04, GOOG changed name to GOOGL; also all old GOOG shareholder (as on the record date 27/03) were issued new GOOG on an 1:1 ratio. GOOGL started trading on 03/04.

    Sharesight automatically changed name from GOOG to GOOGL. You reduced cost base for GOOGL to half of the original - $47862.97, which is correct.

    What Sharesight couldn't handle was to create the new GOOG holding on your behalf. You added add 131 GOOG with the same cost base $47862.97, which is also correct.

    I think by "capital loss" you actually meant performance drop? A slip in share price is an anticipated result of share split. There is a capital loss when you sold 131 GOOG at a consideration lower than the cost base. There is no capital loss for your GOOGL holding.

    Please let me know if you are still experiencing trouble.
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. sad, anxious, confused, frustrated kidding, amused, unsure, silly happy, confident, thankful, excited indifferent, undecided, unconcerned

  • thanks for your help,

    the stock was split 1:2, i.e. each investor gets one share of each of GOOG and GOOGL in the split.

    from https://investor.google.com/financial...

    "the new Class C capital stock will trade on the NASDAQ Global Select Market under the original symbol GOOG"

    so the old shares are trading under the new symbol (GOOGL), and the new shares under the old symbol (GOOG)!

    does that means what i have done is correct? it means my performance reports are wrong tho.
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. kidding, amused, unsure, silly happy, confident, thankful, excited sad, anxious, confused, frustrated indifferent, undecided, unconcerned

  • i ended up adjusting the cost base on my GOOGL shares by 80643.91, which is the amount of GOOG shares i recorded as buying that day. hopefully that solves it!?
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. sad, anxious, confused, frustrated kidding, amused, unsure, silly happy, confident, thankful, excited indifferent, undecided, unconcerned

  • Hi Angelo,

    You don't need to change anything. Your original adjustments were correct. My apology that my previous comment wasn't clear. I just updated that comment (made yesterday). 

    The performance reports wasn't necessarily wrong, but in this case, you need to combine them to get a general picture. 
  • (some HTML allowed)
    How does this make you feel?
    Add Image
    I'm

    e.g. sad, anxious, confused, frustrated kidding, amused, unsure, silly happy, confident, thankful, excited indifferent, undecided, unconcerned