Hello
How to deal with free shares ? For instance every 2 years Air Liquide offers 1 free share for 10 kept.
It is not possible to buy a share with 0 as price.
There is no free lunch. It’s essentially a split, or a stock dividend.
you mean I have to create a dividend and buy a share for the same amount ? I tried a purchase for 0.01€ and it seems ok.
Hey opuhara,
of course a purchase with 1 Ct per share works … but it is wrong.
Air Liquide gives away shares of their company held shares into free float shares. That is as giving cash to shareholders, which is a dividend. Think of the other side as well, how does Air Liquide would book that event? Most likely not as gift.
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ok then I am correcting my entries with the price of the share at the right date as dividend then as purchase.
Hey opuhara,
Maybe it is worth reading the internet a bit for that. I do not carry Air Liquide shares but on some web sites I found the “free shares” marked as 1:10 split. personally I do not think that this is correct as not all shares are granted.
In my opinion you are doing the right thing … and the exact value of the dividend is not important, main thing is that you use all the dividend to purchase the extra share. Most importantly for PP is that the number of shares in your portfolio is correct.
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