General Motors pfd B Conversion
« on: December 07, 2013, 10:06:10 AM »
I received shares of GM common and cash in lieu in exchange for the convertible GM-B. How do I record this transaction? The conversion was 1.3736 shares of GM for each preferred share. I believe that the cash is treated as a sale of fractional shares. I would like to maintain the original purchase date of the preferred as the basis date for the newly issues common. Any suggestions?   

Re: General Motors pfd B Conversion
« Reply #1 on: December 10, 2013, 10:03:22 AM »
You can use the merger function to convert the preferred shares into common.  Then sell the fractional shares for the cash in lieu received.