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## Stock Split Entry Backwards? Or Not?

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appateritisr
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### Stock Split Entry Backwards? Or Not?

Sat Mar 04, 2023 1:19 am
The entry of stock splits in a ledger really confuses me. Throughout all time and space, I've always seen stock splits described as something like 2:1 (get 2 shares for each 1 owned) or 3:2 (get 3 shares for each 2 owned). Yet, in the ledger, when I enter a stock split, the Ratio entry reads "1 / x" and we're supposed to fill in the x. Well, if I'm recording a 2:1 split, that field implies I should enter 0.5 (1/0.5 = 2/1). Yet, if I enter that, the split is exactly backwards. If I read the Help page on stock splits:

https://docs.kde.org/stable5/en/kmymoney/kmymoney/details.investments.ledger.html

it says:
Split Shares
This is used when the stock is split. Enter the ratio of the split in the “Split Ratio” field. For example, in a 3:2 split, enter 1.5. Reverse splits, where the ration is less than one, such as 2:3, although uncommon, are also allowed.

It hurts my brain a bit to think like that, but I think that agrees with what I'm actually seeing happen: 3:2 is the same as 1.5/1. But, again, that's completely opposite of what the stock split activity Ratio field is implying.

I'm assuming the "1/" bit of text following the word "Ratio" shouldn't be there. But, regardless, it's really confusing.

EDIT: Also, if you filter the ledger by the word "split" (to see all the splits entered), the Quantity field in the resulting ledger is also in the form 1/x. And, unless I'm totally wrong about this, that's backwards, too. For instance, a 2:1 stock split (which I'd entered as 1:0.5 in the Ratio field of the actual entry form) REDUCED the number of shares I had by half instead of DOUBLING them. The Quantity field of the ledger showed 1/0.5. When I corrected the split by replacing the 0.5 in the Ratio field of the entry form with a 2 (so it reads "1/2" (i.e. I get 1 share for every 2 I own, i.e., backwards) it correctly doubled my shares instead of halving them. But the Quantity field of the ledger now shows that incorrect "1/2" too.
ostroffjh
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### Re: Stock Split Entry Backwards? Or Not?

Sat Mar 04, 2023 6:21 pm
It's not you - it IS confusing. I think it might be better if the display were "1 : ___" instead of "1 / ___" as it seems to be 1 old share gets you that number of new shares. I'll have to review the manual to see about improving the wording. It will probably be better to say how many shares you get for each one you already have, rather than using the word ratio.

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