How to handle stock splits and consolidations

Overview

The formula for calculating a stock split or consolidation is 

Ratio = New Shares / Old Shares 

For example 

  1. On 2021-02-18 you buy 100 GME shares
  2. On 2022-07-21 Gamestop issued a stock split 4 to 1
  3. You now have 400 GME shares.
    1. You can type in 4 in the stock split ratio, 
    2. However…
    3. The better way to do this is type the excel formula = 400/100
    4. It is more accurate and good practice to follow.
  4. Put this formula in all Buy and Sell transactions prior the stock split date of 2022-07-21 

Scenario 1

Lets say there are a few buy & sell transactions before the GME stock split.

How would you handle the following transactions.

  1. On 2021-02-18 you buy 100 GME shares
  2. On 2021-03-04 you sell 25 GME shares
    1. You have a balance of 75 GME shares
    2. You can see this on column AD
  3. On 2022-07-21 Gamestop issued a stock split 4 to 1
  4. You now have 300 GME shares.
    1. You can type in 4 in the stock split ratio, 
    2. However…
    3. The better way to do this is type the excel formula = 300/75
    4. It is more accurate and good practice to follow.
  5. Put this formula in all Buy and Sell transactions prior 2022-07-21