Processing Security Splits

Processing Security Splits

Stock splits occur when a company decides to increase the number of outstanding shares in their stock but keep the proportionate equity value the same (for example, instead of a shareholder having one share worth $100, the share would be split into two shares that were each worth $50). The price per share and the number of shares owned immediately adjusts to reflect the stock split.

NOTE: Many companies split their stock to decrease the value of a share to make a standard block of shares (100 shares) easier to buy.

1. In the Gift Securities Inventory Data Grid, select the Security that you want to change, and then click the Corporate Actions tab.

2. On the Corporate Actions tab, select Process Security Split and then click the Run Process button. The Process Security Split window opens with the selected Security listed in the Security field.

Process Security Split Window
NOTE: If you want to change the information for a different Security, click the Lookup button next to the Security field and select the desired Security from the Lookup list.

3. Enter the Date Split (the date when the split became effective).

4. Enter the Split Ratio (for example, if the stock is split so the value changes from $100 to $50, enter 2 to 1).

5. Click OK.

6. Verify the Send To destination, and then click the Run Report button. The Security Split Report opens, providing information about the split – including the number of new shares, number of old shares, and the new and old prices.

Security Split Report

7. Verify the information on the report. You can rerun this process to fix any errors (for example, if you entered the split ratio backwards).

8. Once you verify that the information on the report is correct, click Post Split on the FIMS Viewer menu bar. The number of shares in inventory is automatically adjusted.

NOTE: These changes will also be listed on the Corporate Action History tab on the Securities window (File Maintenance > Donor and Gift Code Maintenance > Securities).

Corporate Action History Tab