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Old 10-24-2003, 06:49 PM
Cal Learner-- MVP
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Default Re: Reinvesting dividends

In microsoft.public.money, Mohit wrote:

- quote -

> I need help with a certain issue. Its on the regarding
> usability Microsoft Money. Now if you have a certain no
> of shares with a brokerage firm (Td Waterhouse
> Securities) and you download statement from TD waterhouse
> Securities. Now they will have a dividend for the no. of
> shares but the issue is when you reinvest the dividend
> you get into some other account. Now this firm has the
> option of reinvesting the dividend into money market fund
> and how do you enter it into money. Because you have a
> problem because the dividend itself downloads as a
> separate transaction and it should not be so since it is
> getting invested in the money market fund. How do you
> enter it in Microsoft Money when it comes to reinvesting
> dividends?


The dividend gets entered into the Investment Transactions as a
Dividend and also shows in the Cash Transactions, increasing your
cash balance. You also download a Buy of the money market fund. The
amount of that buy will equal the amount of the dividend if there
were no other transactions for that day; the cash balance would
again be zero if there were no trades to be settled in the future..

If you bought or sold a stock 3 business days before, that stock
could settle on the day of the dividend. The money market
transaction would be the net (algebraic sum) of the stock
transaction and the dividend.

There is more than one way for a broker to send the dividend
information, and there are three ways for a broker to handle money
market funds. For a broker account, you want to match the way that
broker enters the transaction. For TD Waterhouse, enter a Dividend
transaction and a Buy for the MM fund. Or just wait until you
download as most people do. Most people do not anticipate a dividend
by pre-entering the transaction. So if you just go with the flow, it
works nicely.


  #-1  
Old 10-24-2003, 06:11 PM
Mohit
Guest
 
Posts: n/a
Default Reinvesting dividends

I need help with a certain issue. Its on the regarding
usability Microsoft Money. Now if you have a certain no
of shares with a brokerage firm (Td Waterhouse
Securities) and you download statement from TD waterhouse
Securities. Now they will have a dividend for the no. of
shares but the issue is when you reinvest the dividend
you get into some other account. Now this firm has the
option of reinvesting the dividend into money market fund
and how do you enter it into money. Because you have a
problem because the dividend itself downloads as a
separate transaction and it should not be so since it is
getting invested in the money market fund. How do you
enter it in Microsoft Money when it comes to reinvesting
dividends?
 

Tags
dividends, reinvesting


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