Q. I want to use the PortfolioCenter Transaction Writer and the stock merger/exchange wizard to enter a stock merger.  What is the “share exchange ratio” and how do I find it?

A. The share exchange ratio is the number of shares the investor receives of the new company based on the number of shares the investor owns of the original company.  As with most information on corporate actions, you can usually find this number on the company’s web site or by calling their customer relations phone number.  You will need this ratio to process the stock merger in the PortfolioCenter transaction writer.

If you need to calculate the ratio, divide the number shares of the new stock by the number of shares of the original stock.  For example, if 150 shares of stock A are exchanged for 200 shares of stock B, the share exchange ratio is 200/150 or 1.3333

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