Stock Owner Register Splits for Client


Owner Register Tools – Menu

Select Equity Splits from the tools menu on the Owner Register page.

Tools – Equity Splits

An equity split results in the replacement of current ownership certificates with new certificates that have a fraction or a multiple of the current number of shares or units held by each owner. The total number of shares or units outstanding can decrease or increase, but the percentage of total ownership for each owner remains the same.

Start by selecting the company and the type of ownership on the ‘Owner Register’ form and then select the ‘Equity Splits’ option on the ‘Tools’ menu. The ‘Equity Split’ form opens (see below).

Press the ‘New Split’ button. Textboxes for ‘Date of Split’, ‘From Shares’, and ‘To Shares’ appear. Enter the date. Add a ‘From’ and ‘To’ number, entered as a decimal, for the split. The example below illustrates a two to one split. The ‘From Shares’ box is one so the ‘To Shares’ box must be .5 (1/2 share) to create the 2 to 1 split. Press the ‘Calculate Ownership’ button.

The names of owners appear with the number of shares/units held by each owner in the ‘Old Quantity’ column (see below). The ‘New Quantity’ column contains the multiple of shares/units after the split. A 2-to-1 split causes the ‘New Quantity’ column to be 1/2 the quantity in the ‘Old Quantity’ column.

IMPORTANT: If you are doing a ‘what if’ type of exercise, do not press the ‘Create Transaction’ button. Data up to this point can be discarded but it is not easily changed once the ‘Create Transaction’ button is pressed. Splits can be calculated and saved without creating new transactions. Just don’t press the ‘Create Transaction’ button unless you are certain that a split needs to be performed.

To enter transactions for the split, press the ‘Create Transaction’ button and it will generate the transactions that surrender the old certificates and issue new certificates for each owner. After the split, the transaction can be viewed on the ‘Certificate’ and ‘Transaction’ forms.

Below is an example of a 1-to-2 split. The number of shares in the ‘New Quantity’ column is twice the amount in the ‘Old Quantity’ column.