Hedge Fund (cash value investment account)


A

Allan

I have an account where the total value flucuates based on performance, but
the the buy in share price is always $1. How is this best handled. I have
tried to re-invest a negative dividend but that does not work when the value
drops. Positive changes are easy.
 
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A

A Count

I have an account where the total value flucuates based on performance,
but
the the buy in share price is always $1. How is this best handled. I have
tried to re-invest a negative dividend but that does not work when the value
drops. Positive changes are easy.
Well, the total value divided by $1 would be the number of shares. To hold
the $1 share value the number of shares must change. As a fundamental
operation, changing the number of shares without buy or sell transactions
is...a stock split.

Remember in a traditional stock split the change in share value is simply
the judgement of the market. Also note that a split ratio greater than zero
and less then 1 is a reverse split.
 

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