Selling Equities

Equities that have been invested in can be sold at any time. One sale can contain:

• All of the equities from a single deal.

• A portion of the equities from a single deal.

• A portion, or all, of the equities from several different deals.

You can elect to sell only a portion of the equities from a single deal by specifying a smaller number of shares in the Shares to Sell field than are listed in the # of Shares field. Be sure that the number of shares in Shares to Sell matches the number of shares that are listed in the Total Shares to Sell field. You can use either the Average Price or the Specific Price method for calculating the sale price of the equity.

The method that is used to calculate the sale price of equities is specified on the Equity Definition page. The two calculation methods are:

• Average Price Method.

  This method calculates a single purchase price for all of the shares that are to be sold. You identify all lots purchased of the shares and the system calculates a single average purchase price for shares that are to be sold. The gain and loss is the same for each lot sold. This method should be used to calculate the gain or loss when the sale is across multiple deals. This method is applicable when multiple lots exist. If one lot exists, then using the average method or the specific price method produces the same results.

• Specific Price Method.

  This method identifies multiple purchase prices when you indicate the purchased lots that are to be sold and the number of shares sold from those lots. The gain and loss is different for each lot sold.

You can sell the equities from several different deals in a single transaction by entering the appropriate number of shares to be sold in the Shares to Sell field for each deal that is a part of the transaction. The total number of shares that are specified must equal the number of shares that are entered in Total Shares to Sell. When a sale contains multiple deals, you should specify that the Average Price is used to calculate the sale price. When a sale contains a single deal, using either the Average Price or the Specific Price method provides the same price for the equities.

When all of the equities in a deal are sold, the deal status changes to Sold. When you sell a portion of the equities in a single deal, the system creates a new deal for the remainder of the equities. A master deal ID links all new deals to the deal ID of the original deal. This is similar to the Sell/Buyback for IRP functionality.

Use the Sale Details page (TRX_EQTY_SALE_SP) to enter stock sale details.

Navigation:

Deal Management > Equities > Equity Definition

Click the Sell link on the Equity Definition page.

This example illustrates the fields and controls on the Sale Details page. You can find definitions for the fields and controls later on this page.