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<chapter id="chapter_invest">
  <title>Investments</title>

  <para>This chapter explains how to manage your investments with &app;.
  Most people have an investment plan, whether its just putting money into a
  CD account, investing through a company sponsored plan at your workplace or
  buying and selling stocks and bonds through a brokerage. &app; gives you
  tools to help you manage these investments such as the <emphasis>Price
  Editor </emphasis> which allows you to record changes in the prices of
  stocks you own.</para>

  <sect1 id="invest_concepts1">
    <title>Basic Concepts</title>

    <para>An investment is something that you purchase in the hopes of
    generating income, or that you hope to sell in the future for more than
    you paid. Using this simple definition, many things could be considered
    investments: the house you live in, a valuable painting, stocks in
    publicly traded companies, your savings account at the bank, or a
    certificate of deposit. These many types of investments will be discussed
    in this chapter in terms of how to track them using &app;.</para>

    <sect2 id="invest_terms2">
      <title>Terminology</title>

      <para>Before discussing investments specifically, it will be helpful to
      present a glossary of investment terminology. The terms presented below
      represent some of the basic concepts of investing. It is a good idea to
      become familiar with these terms, or at least, refer back to this list
      if you encounter an unfamiliar word in the later sections.</para>

    <variablelist>
      <varlistentry>
        <term><emphasis>Capital gains</emphasis></term>
        <listitem>
          <para>The difference between
          the purchase and selling prices of an investment. If the selling
          price is lower than the purchase price, this is called a
          <emphasis>capital loss</emphasis>. Also known as <emphasis>realized
          gain/loss</emphasis>.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Commission</emphasis></term>
        <listitem>
          <para>The fee you pay to a broker
          to buy or sell securities.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Common stock</emphasis></term>
        <listitem>
          <para>A security that
          represents a certain fractional ownership of a company. This is what
          you buy when you <quote>buy stock</quote> in a company on the open market. This
          is also sometimes known as <emphasis>capital
          stock</emphasis>.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Compounding</emphasis></term>
        <listitem>
          <para>The concept that the
          reinvested interest can later earn interest of its own (interest on
          interest). This is often referred to as <emphasis>compound
          interest</emphasis>.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Dividends</emphasis></term>
        <listitem>
          <para>Dividends are cash payments a company
          makes to shareholders. The amount of this payment is usually
          determined as some amount of the profits of the company. Note that
          not all common stocks give dividends.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Equities</emphasis></term>
        <listitem>
          <para>Equities are investments in which the
          investor becomes part (or whole) owner in something. This includes
          common stock in a company, or real estate.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Interest</emphasis></term>
        <listitem>
          <para>What a borrower pays a lender
          for the use of their money. Normally, this is expressed in terms of
          a percentage of the principal per year. For example, a savings
          account with 1% interest (you are the lender, the bank is the
          borrower) will pay you $1 for every $100 you keep there per
          year.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Liquidity</emphasis></term>
        <listitem>
          <para>A measure of how easily
          convertible an investment is to cash. Money in a savings account is
          very liquid, while money invested in a house has low liquidity
          because it takes time to sell a house.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Principal</emphasis></term>
        <listitem>
          <para>The original amount of money
          invested or borrowed.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Realized vs Unrealized Gain/Loss</emphasis></term>
        <listitem>
          <para>Unrealized gain or loss occurs when you&rsquo;ve got a change in price of
          an asset. You realize the gain/loss when you actually sell the
          asset. See also <emphasis>capital gain/loss</emphasis>.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Return</emphasis></term>
        <listitem>
          <para>The total income plus capital
          gains or losses of an investment. See also
          <emphasis>Yield</emphasis>.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Risk</emphasis></term>
        <listitem>
          <para>The probability that the return
          on investment is different from what was expected. Investments are
          often grouped on a scale from low risk (savings account, government
          bonds) to high risk (common stock, junk bonds). As a general rule of
          thumb, the higher the risk the higher the possible return.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Shareholder</emphasis></term>
        <listitem>
          <para>A shareholder is a person who holds common
          stock in a company.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Stock split</emphasis></term>
        <listitem>
          <para>Occurs when a company offers
          to issue some additional multiple of shares for each existing stock.
          For example, a <quote>2 for 1</quote> stock split means that if you own 100
          shares of a stock, you will receive an additional 100 at no cost to
          you. The unit price of the shares will be adjusted so there is no
          net change in the value, so in this example the price per share will
          be halved.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Valuation</emphasis></term>
        <listitem>
          <para>The process of determining
          the market value or the price the investment would sell at in a
          <quote>reasonable time frame</quote>.</para>
        </listitem>
      </varlistentry>

      <varlistentry>
        <term><emphasis>Yield</emphasis></term>
        <listitem>
          <para>A measure of the amount of money
          you earn from an investment (IE: how much income you receive from
          the investment). Typically this is reported as a percentage of the
          principal amount. Yield does not include capital gains or loses (see
          Return). Eg: A stock sells for $100 and gives $2 in dividends per
          year has a yield of 2%.</para>
        </listitem>
      </varlistentry>
    </variablelist>
    </sect2>

    <sect2 id="invest_types2">
      <title>Types of Investments</title>

      <para>Below is presented some of the broad types of investments
      available, and examples of each type.</para>

      <itemizedlist>
        <listitem>
          <para><emphasis>Interest-bearing account or
          instrument</emphasis></para>

          <para>This type of investment usually allows you immediate access to
          your money, and will typically pay you interest every month based on
          the amount of money you have deposited. Examples are bank savings
          accounts (and some interest bearing checking accounts) and cash
          accounts at your brokerage. This is a very low risk investment, in
          the US these accounts are often insured against loss, to a specified
          limit.</para>

          <para>Sometimes an interest bearing investment is
          <emphasis>time-locked</emphasis>. This type of investment requires
          you to commit your money to be invested for a given period of time
          for which you receive a set rate of return. Usually, the longer you
          commit the higher the interest rates. If you withdraw your money
          before the maturity date, you will usually have to pay an early
          withdrawal penalty. This is a relatively lower risk investment.
          Examples are certificates of deposit or some government bonds. Other
          types of Bonds may have higher yields based on the higher risks from
          the quality of the issuer&rsquo;s <quote>credit rating</quote>.</para>
        </listitem>

        <listitem>
          <para><emphasis>Stocks and Mutual Funds</emphasis></para>

          <para>This is an investment you make in a company, in which you
          effectively become a part owner. There is usually no time lock on
          publicly traded stock, however there may be changes in the tax rates
          you pay on capital gains depending on how long you hold the stock.
          Thus, stocks are typically quite liquid, you can access your money
          relatively quickly. This investment is a higher risk, as you have no
          guarantee on the future price of a stock.</para>

          <para>A mutual fund is a group investment mechanism in which you can
          buy into many stocks simultaneously. For example, a "S&amp;P 500
          index fund" is a fund which purchases all 500 stocks listed in the
          Standard and Poor&rsquo;s index. When you buy a share of this fund, you
          are really buying a small amount of each of the 500 stocks contained
          within the fund. Mutual funds are treated exactly like a single
          stock, both for tax purposes and in accounting.</para>
        </listitem>

        <listitem>
          <para><emphasis>Fixed Assets</emphasis></para>

          <para>Assets that increase in value over time are another form of
          investment. Examples include a house, a plot of land, or a valuable
          painting. This type of investment is very difficult to determine the
          value of until you sell it. The tax implications of selling these
          items is varied, depending on the item. For example, you may have
          tax relief from selling a house if it is your primary residence, but
          may not receive this tax break on an expensive painting.</para>

          <para>Fixed asset investments are discussed in <xref linkend="chapter_capgain" /> and
          <xref linkend="chapter_dep" />. Typically, there is not much to do
          in terms of accounting for fixed asset investments except recording
          the buying and selling transactions.</para>
        </listitem>
      </itemizedlist>
    </sect2>
  </sect1>

  <sect1 id="invest_accounts1">
    <title>Setting Up Accounts</title>

    <para>To setup investment accounts in &app; you can either use the
    predefined investment account hierarchy or create your own. The minimum
    you need to do to track investments is to setup an asset account for each
    type of investment you own. However, as we have seen in previous chapters,
    it is usually more logical to create a structured account hierarchy,
    grouping related investments together. For example, you may want to group
    all your publicly traded stocks under a parent account named after the
    brokerage firm you used to buy the stocks.</para>

    <note>
    <para>Regardless of how you setup your account hierarchy, remember that
    you can always move accounts around later (without losing the work you&rsquo;ve
    put into them), so your initial account hierarchy does not have to be
    perfect.</para>
    </note>

    <sect2 id="invest_predefined2">
      <title>Using Predefined Investment Accounts</title>

      <para>The <guilabel>Investment Accounts</guilabel> option of the
      <guilabel>New Account Hierarchy Setup</guilabel> assistant will
      automatically create a basic investment account hierarchy for you. To
      access the predefined investment accounts hierarchy, you must make
      sure your &app; file is open, switch to the
      <guilabel>Accounts</guilabel> tab, and choose
      <menuchoice><guimenu>Actions</guimenu><guimenuitem>New Account
      Hierarchy</guimenuitem></menuchoice>. This will run the <guilabel>New
      Account Hierarchy Setup</guilabel> assistant and allow you to select
      additional accounts to add to your account hierarchy. Choose the
      <guilabel>Investment Accounts</guilabel> option (along with any
      others you are interested in). Assuming only investment accounts were
      selected, this will create an account hierarchy as shown
      below.</para>

      <tip>
        <para>You can also run the <guilabel>New Account Hierarchy
        Setup</guilabel> assistant by creating a new &app; file.</para>
      </tip>

      <screenshot id="invest_accountspredef">
        <mediaobject>
	   <imageobject role="html">
             <imagedata fileref="figures/invest_AccountsPredef.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_AccountsPredef.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Setup Interest Investment</phrase>
          </textobject>

          <caption><para>This is a screen image of the <guilabel>Accounts</guilabel> tab after
          creating a new file and selecting only the default investment
          accounts. </para></caption>
        </mediaobject>
      </screenshot>

      <para>You will probably at least want to add a <emphasis>Bank</emphasis>
      account to the Assets and probably an <emphasis>Equity:Opening Balances</emphasis>
      account, as we have done in previous chapters. Don&rsquo;t
      forget to save your new account file with a relevant name!</para>
    </sect2>

    <sect2 id="invest_creating2">
      <title>Creating Investment Accounts Manually</title>

      <para>If you want to set up your own investment accounts hierarchy,
      you may of course do so. Investments usually have a number of
      associated accounts that need to be created: an asset account to
      track the investment itself; an income account to track dividend
      transactions; and expense accounts to track investment fees and
      commissions.</para>

      <para>In a typical account structure, security accounts are sub accounts
        of an asset account representing an account at a brokerage firm. The
        brokerage account would be denominated in your local currency and it
        would include sub accounts for each security that you trade there.
      </para>

      <para>Related purchases, sales, income and expense accounts should also
        be in the same currency as the brokerage account.
      </para>

      <para>The security sub accounts would each be configured to contain units
        of a single security selected from the master (user defined) security
        list and they are expected to use the same currency as the brokerage
        account.
      </para>

      <para>Security prices are kept in a separate area of
        &app; (the Price Database -
        <menuchoice><guimenu>Tools</guimenu><guimenuitem>Price Editor</guimenuitem>
        </menuchoice>). This
        contains prices for individual securities (not security accounts). All
        prices for an individual security are in a single currency. If a
        security is traded in multiple currencies, then a separate security and
        separate accounts should be set up for each currency.
      </para>

    </sect2>

    <sect2 id="invest_custom2">
      <title>Custom Accounts Example</title>

      <para>The following is a somewhat more complicated example of setting up
      &app; to track your investments, which has the advantage that it
      groups each different investment under the brokerage that deals with the
      investments. This way it is easier to compare the statements you get
      from your brokerage with the accounts you have in &app; and spot where
      &app; differs from the statement. <literallayout>
 Assets
    Investments
       Brokerage Accounts
          I*Trade
             Stocks
                ACME Corp
             Money Market Funds
                I*Trade Municipal Fund
             Cash
          My Stockbroker
             Money Market Funds
                Active Assets Fund
             Government Securities
                Treas Bond xxx
                Treas Note yyy
             Mutual Funds
                Fund A
                Fund B
             Cash
 Income
    Investments
       Brokerage Accounts
          Capital Gains
             I*Trade
             My Stockbroker
          Dividends
             I*Trade
                Taxable
                Non-taxable
             My Stockbroker
                Taxable
                Non-taxable
          Interest Income
             I*Trade
                Taxable
                Non-taxable
             My Stockbroker
                Taxable
                Non-taxable
 Expenses
    Investment Expenses
       Commissions
          I*Trade
          My Stockbroker
       Management Fees
          I*Trade
          My Stockbroker
 </literallayout></para>

      <tip>
      <para>There really is no standard way to set up your investment account
      hierarchy. Play around, try different layouts until you find something
      which divides your investment accounts into logical groups which make
      sense to you.</para>
      </tip>
    </sect2>
  </sect1>

  <sect1 id="invest_int1">
    <title>Interest Bearing Accounts</title>

    <para>Investments which have a fixed or variable rate of interest are one
    of the simplest and most common form of investments available. Interest
    bearing investments include your bank account, a certificate of deposit,
    or any other kind of investment in which you receive interest from the
    principal. This section will describe how to handle these kinds of
    investments in &app;.</para>

    <sect2 id="invest_intacct2">
      <title>Account Setup</title>

      <para>When you purchase the interest bearing investment, you must create
      an asset account to record the purchase of the investment, an income
      account to record earnings from interest, and an expense account to
      record bank charges. Below is an account layout example, in which you
      have an interest bearing savings account and a certificate of deposit at
      your bank.</para>

      <literallayout>
Assets
   Bank ABC
      CD
      Savings
Expenses
   Bank ABC
      Charges
Income
   Interest Income
      CD
      Savings
  </literallayout>

      <para>As usual, this account hierarchy is simply presented as an
      example, you should create your accounts in a form which best matches
      your actual situation.</para>
    </sect2>

    <sect2 id="invest-intex2">
      <title>Example</title>

      <para>Now let&rsquo;s populate these accounts with real numbers. Let&rsquo;s assume
      that you start with $10000 in your bank account, which pays 1% interest
      and you buy a $5000 certificate of deposit with a 6 month maturity date
      and a 2% yield. Clearly, it is much better to keep your money in the CD
      than in the savings account. After the initial purchase, your accounts
      should look something like this:</para>

      <screenshot id="invest-int">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_int1.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_int1.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Setup Interest Investment</phrase>
          </textobject>

          <caption><para>This is an image of the account register after
          creating and investing in a CD investment. </para></caption>
        </mediaobject>
      </screenshot>

      <para>Now, during the course of the next 6 months, you receive monthly
      bank statements which describe the activity of your account. In our
      fictional example, we do nothing with the money at this bank, so the
      only activity is income from interest and bank charges. The monthly bank
      charges are $2. After 6 months, the register window for the CD and for the savings
      account should look like these:</para>

      <screenshot id="invest-int2">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_int2.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_int2.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Setup Interest Investment</phrase>
          </textobject>

          <caption><para>This is an image of the register of the CD account
          after 6 months. </para></caption>
        </mediaobject>
      </screenshot>

      <screenshot id="invest-int2-1">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_int2-1.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_int2-1.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Setup Interest Investment</phrase>
          </textobject>

          <caption><para>This is an image of the register of the Savings account
          after 6 months. </para></caption>
        </mediaobject>
      </screenshot>

      <para>And this is the main &app; account window:</para>

      <screenshot id="invest-int3">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_int3.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_int3.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Setup Interest Investment</phrase>
          </textobject>

          <caption><para>This a screen capture of the accounts after 6 months.
          </para></caption>
        </mediaobject>
      </screenshot>

      <para>From the above image of the main &app; account window you see a
      nice summary of what happened to these investments over the 6 months.
      While the yield on the CD is double that of the savings account, the
      return on the CD was $50.21 versus $13.03 for the savings account, or
      almost 4 times more. Why? Because of the pesky $2 bank charges that hit
      the savings account (which counted for $12 over 6 months).</para>

      <para>After this 6 month period, the CD has reached maturity which means
      you may sell it with no early withdrawal penalty. To do so, simply
      transfer the $5050.21 from the CD account into the savings
      account.</para>
    </sect2>
  </sect1>

  <sect1 id="invest-setup1">
    <title>Setup Investment Portfolio</title>

    <para>Now that you have built an account hierarchy in the previous
    section, this section will show you how to create and populate the accounts with your
    investment portfolio. After this initial setup of your portfolio, you may have
    shares of stock purchased from before you started using &app;. For these stocks,
    follow the instructions in the <link linkend="invest-buy-stock2"><emphasis>Entering
    Preexisting Shares</emphasis></link> section below. If you have just purchased your stocks,
    then use the <link linkend="invest-buy-new2"><emphasis>Buying New Shares</emphasis>
    </link> section.</para>

    <sect2 id="invest-setup-stockaccounts2">
      <title>Setup Accounts for Stocks and Mutual Funds</title>

      <para>This section will show you how to add stocks and mutual fund
      accounts to &app;. In this section, we will assume you are using the
      basic account setup introduced in the previous section, but
      the principles can be applied to any account hierarchy.</para>

      <para>You should have within the top level <guilabel>Asset</guilabel>
      account, a few levels down, an account entitled
      <guilabel>Stock</guilabel>. Open the account tree to this level by
      clicking on the <quote>right facing triangle marker</quote> signs next
      to the account names until the tree is opened to the depth of the new
      account. You will need to create a sub-account (of type
      <emphasis>stock</emphasis>) under the Stock account for every stock you
      own. Every stock is a separate account. The naming of these stock
      accounts is usually done using the stock ticker abbreviation, though account
      names may be anything that is clear to you and other users. So, for
      example, you could name your accounts <emphasis>AMZN</emphasis>,
      <emphasis>IBM</emphasis> and <emphasis>NST</emphasis> for your Amazon,
      IBM and NSTAR stocks respectively. Below is a schematic model of the
      layout (only showing the Assets sub-accounts).</para>

      <literallayout>
 Assets
    Investments
       Brokerage Accounts
          Bond
          Mutual Funds
          Market Index
          Stock
             AMZN
             IBM
             NST
 </literallayout>

      <note>
        <para>If you want to track income (dividends/interest/capital gains)
        on a per-stock or fund basis, you will need to create an
        <emphasis>Income:Dividends:STOCKSYMBOL</emphasis>,
        <emphasis>Income:Cap Gain (Long):STOCKSYMBOL</emphasis>,
        <emphasis>Income:Cap Gain (Short):STOCKSYMBOL</emphasis>
        and <emphasis>Income:Interest:STOCKSYMBOL</emphasis>
        account for each stock you own that pays dividends or interest.</para>
      </note>
    </sect2>

    <sect2 id="invest-setup-example2">
      <title>Example Stock Account</title>

      <para>As an example, let&rsquo;s assume that you currently own 100 shares of
      Amazon stock. First, create the stock account AMZN by selecting the
      <guilabel>Stock</guilabel> account and click on the menu <menuchoice>
      <guimenu>Actions</guimenu><guimenu>New Account...</guimenu></menuchoice>. The New
      Account dialog will appear, follow the steps, in the sequence below to
      setup your new stock account.</para>

      <screenshot id="invest-newaccount">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_newaccount.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_newaccount.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>New Account Window</phrase>
          </textobject>

          <caption><para>New Account Window </para></caption>
        </mediaobject>
      </screenshot>

      <orderedlist>
        <listitem>
          <para><emphasis>Account Name</emphasis> - Usually, use the stock
          ticker abbreviation, IE: <quote>AMZN</quote></para>
        </listitem>

        <listitem>
          <para><emphasis>Account Code</emphasis> - Optional field, use CUSIP,
          the newspaper listing symbol, mutual fund family ID or code of your
          own choosing.</para>
        </listitem>

        <listitem>
          <para><emphasis>Description</emphasis> - Optional field for detailed
          description of the commodity/stock. Note this field by default is
          displayed in the <guilabel>Account</guilabel> tab tree.</para>
        </listitem>

        <listitem>
          <para><emphasis>Account Type</emphasis> - Select the type of account
          you are creating from the lower left-hand list.</para>
        </listitem>

        <listitem>
          <para><emphasis>Parent Account</emphasis> - Select the parent
          account for the new account from the right hand listing. Expand list
          of accounts if necessary.</para>
        </listitem>

        <listitem>
          <para><emphasis>Create the New Security</emphasis> - To use a new
          stock, you must create the stock as a new commodity</para>

          <note><para>Be sure to first select Account Type <emphasis>Stock
            </emphasis> or <emphasis>Mutual Fund</emphasis> so that the
            <guilabel>Select...</guilabel> button brings up the list of
            securites rather than currencies.</para>
          </note>

          <itemizedlist>
            <listitem>
              <para><emphasis>Select Security/Currency</emphasis> - Click on
              the <guibutton>Select ...</guibutton> button next to the
              <guilabel>security/currency</guilabel> line. We must change the
              security from the default (your default currency) to this
              specific stock. This will bring up the
              <guilabel>Select Security</guilabel> dialog.</para>
            </listitem>

            <listitem>
              <para><emphasis>Type</emphasis> - Select the exchange where the
              security/commodity is traded (in this example NASDAQ).</para>

              <para>Select the <guibutton>New</guibutton> button to open the
              <guilabel>New Security</guilabel> window.</para>

              <screenshot id="invest-selectsecurity">
                <mediaobject>
                   <imageobject role="html">
                     <imagedata fileref="figures/invest_selectsecurity.png" format="PNG"
                                srccredit="Cristian Marchi"></imagedata>
                   </imageobject>
                   <imageobject role="fo">
                     <imagedata fileref="figures/invest_selectsecurity.png" format="PNG"
                                srccredit="Cristian Marchi"></imagedata>
                   </imageobject>

                  <textobject>
                    <phrase>Select Security Window</phrase>
                  </textobject>

                  <caption><para>Select Security Window </para></caption>
                </mediaobject>
              </screenshot>
            </listitem>

            <listitem>
              <para><emphasis>Create the Security</emphasis> - Click on the
              <guibutton>New...</guibutton> button and enter the appropriate
              information for this stock on the new form <guilabel>New Security</guilabel>.</para>

              <!--  Open inner most loop (#3)
-->

              <itemizedlist>
                <listitem>
                  <para>The <guilabel>Full name:</guilabel> is
                  <quote>Amazon.com</quote>.</para>
                </listitem>

                <listitem>
                  <para>The <guilabel>Symbol/abbreviation:</guilabel> is
                  <quote>AMZN</quote>. The symbol is the stock ticker used in your
                  quote source several lines down on the form. Note that different
                  symbols will be utilized on different price sources for the same stock,
                  an example is Ericsson on the Stockholm Exchange is ERIC-B while
                  on Yahoo it is ERRICB.ST</para>
                </listitem>

                <listitem>
                  <para>The <guilabel>Type:</guilabel> should already be
                  <guilabel>NASDAQ</guilabel>, because this is what was selected in the security selector, but you can change it here, including adding more categories. More information about this can be found in the Help Manual in section 7.7, <quote>Security Editor</quote>.</para>
                </listitem>

                <listitem>
                  <para>The <guilabel>ISIN, CUSIP or other code</guilabel> is where
                  you can enter some other coding number or text (leave it
                  blank in this example).</para>
                </listitem>

                <listitem>
                  <para>The <guilabel>Fraction traded</guilabel> should be
                  adjusted to the smallest fraction of this security which can
                  be traded, usually 1/100 or 1/10000.</para>
                </listitem>

                <listitem>
                  <para>The checkbox <quote>Get Online Quotes</quote>, the
                  quote source and the timezone should be selected to define
                  the sources for updating prices on-line. See Also
                  <link linkend="invest-stockprice-auto2">
                    <quote>Setting Stock Price Automatically</quote></link>.</para>

		<note>
                  <para>If the <guibutton>Get Online Quotes</guibutton> button is not highlighted, and it
                  is not tickable, then the <application>Finance::Quote</application> package is not installed.
                  See the section on
                   <link linkend="invest-stockprice-auto-install3">
                    <quote>Installing <application>Finance::Quote</application></quote></link>.</para>
		</note>

                  <para>Below is what this window should look like when
                  finished: <screenshot id="invest-newsecurity">
                      <mediaobject>
                        <imageobject role="html">
                          <imagedata fileref="figures/invest_newsecurity.png" format="PNG"
                                     srccredit="Cristian Marchi" width="510px"></imagedata>
                        </imageobject>
                        <imageobject role="fo">
                          <imagedata fileref="figures/invest_newsecurity.png" format="PNG"
                                     srccredit="Cristian Marchi"></imagedata>
                        </imageobject>

                        <textobject>
                          <phrase>New Security Window</phrase>
                        </textobject>

                        <caption><para>New Security Window </para></caption>
                      </mediaobject>
                    </screenshot></para>
                </listitem>

                <listitem>
                  <para><emphasis>Save Security</emphasis> - Click on the
                  <guibutton>OK</guibutton> button to save this new security,
                  this will close the <guilabel>New Security</guilabel> window and
                  return to the <guilabel>New Account</guilabel> window.</para>
                </listitem>
              </itemizedlist>

              <!--  Close inner most loop
-->
            </listitem>

            <!--  Close loop #2
-->
          </itemizedlist>
        </listitem>

        <listitem>
          <para><emphasis>Select the Security</emphasis> - you should now see
          the newly created security available in the pull down menu for
          <guilabel>Security/Currency</guilabel>. Select it (it is probably
          already selected) and click on <guibutton>OK</guibutton>.</para>
        </listitem>

        <listitem>
          <para><emphasis>Smallest Fraction</emphasis> - Specify the smallest
          fraction of the security/commodity that is traded.</para>
        </listitem>

        <listitem>
          <para><emphasis>Notes</emphasis> - Enter any notes or messages
          related to this security/commodity.</para>
        </listitem>

        <listitem>
          <para><emphasis>Tax Related</emphasis> - Go to <menuchoice><guimenu>Edit</guimenu>
          <guimenuitem>Tax Report Options</guimenuitem></menuchoice> to check this box if this
          account&rsquo;s transactions will relate to Income Taxes.</para>
        </listitem>

        <listitem>
          <para><emphasis>Placeholder</emphasis> - Check box if this account
          is a <quote>Placeholder</quote>, that is it will contain no
          transactions.</para>
        </listitem>

        <listitem>
          <para><emphasis>Finished</emphasis> - You should now have been
          automatically returned to the New Account dialog, with the
          <guilabel>symbol/abbreviation:</guilabel> line set to <quote>AMZN
          (Amazon.com)</quote>. Click on <guibutton>OK</guibutton> to save
          this new stock account.</para>
        </listitem>

        <!--
                    Outer list can now be closed
-->
      </orderedlist>

      <para>You have now created the Amazon stock account, your main account
      should look something like this (notice that there are a few extra
      accounts here, a bank account, and an equity account):</para>

      <screenshot id="invest-setup-current">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_setup_current.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_setup_current.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Setup Current Portfolio</phrase>
          </textobject>

          <caption><para>This image is after the creation of the first stock
          account (AMZN)</para></caption>
        </mediaobject>
      </screenshot>

      <para>Open the account register window for this AMZN stock account
      (double click on it). Here you see the <emphasis
      role="strong">Commodity</emphasis> view. This gives you an overview of
      the transactions in this commodity including the number of units (shares for a stock or mutual fund) bought or sold, the net price per unit, and the total amount.
      Obviously, we have not bought or sold any shares of AMZN yet, so the register should not contain any transactions.</para>
    </sect2>
  </sect1>

  <sect1 id="invest-buy-stock1">
    <title>Buying Shares</title>

    <sect2 id="invest-buy-stock2">
      <title>Entering Preexisting Shares</title>

      <para>
        The examples in this section use <guilabel>Transaction Journal
        </guilabel> view.
      </para>

      <para>To register the initial 100 shares of this stock that you purchased
        previously, on the first (transaction) line, enter the date of the
        purchase (eg: Jan. 1 2005) and <guilabel>Description</guilabel> (eg:
        Opening Balance). On the first split line, enter 100 in <guilabel>Shares
        </guilabel>, delete the (unit) <guilabel>Price</guilabel> (it will be
        calculated when you <keycap>Tab</keycap> out of the split) and enter
        2000 in the <guilabel>Buy</guilabel> column.
      </para>

      <note>
        <para>It is also possible to use &app; to
          calculate <guilabel>Shares</guilabel> or <guilabel>Buy</guilabel> from
          the other 2 columns but to avoid rounding errors, it is better to
          automatically calculate <guilabel>Price</guilabel>.
        </para>
      </note>

      <para><keycap>Tab</keycap> to the second split line, enter transfer from
        account <emphasis>Equity:Opening Balances</emphasis>. For simplicity,
        this example assumed there were no commissions on this transaction.
        Your AMZN Commodity view should now appear like this:
      </para>

      <screenshot id="invest-setup-portfolio1">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_setup_portfolio1.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_setup_portfolio1.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Setup Current Portfolio</phrase>
          </textobject>

          <caption><para>This image is of the transaction register of the AMZN
            account after the first stock <quote>purchase</quote>.</para>
          </caption>
        </mediaobject>
      </screenshot>

      <para>Notice that the <guilabel>Balance</guilabel> (last column) is in the
        units of the commodity (AMZN shares) not in currency units. Thus, the
        balance is 100 (AMZN units) rather than $2000. This is how it should be.
      </para>
    </sect2>

    <sect2 id="invest-buy-new2">
      <title>Buying New Shares</title>

      <para>The main difference between setting up a new stock purchase
        versus the setup for preexisting stocks as described in the previous
        section is that instead of transferring the money used to purchase the
        stock from the <emphasis>Equity:Opening Balances</emphasis> account, you
        transfer from  your <emphasis>Assets:Bank ABC</emphasis> or <emphasis>
        Assets:Brokerage Account</emphasis> account.
      </para>

      <sect3 id="invest-buy-com">
        <title>Handling Commissions and Fees</title>

        <para>For conciseness, this document will refer to the money you pay to
          a broker for buying and selling securities as <emphasis>Commissions
          </emphasis>. Government fees may also be payable. Unless otherwise
          stated, fees are handled in a similar way.
        </para>

        <para>
          In &app; there are 2 alternate ways to
          handle commissions (for simplicity this document section will refer to
          these ways as net pricing and gross pricing):
        </para>

        <itemizedlist>
          <listitem><para><emphasis>Net Pricing:</emphasis> You enter a net
            price (adjusted by commissions) when buying and selling
            securities. You do <emphasis>not</emphasis> also record commissions
            in a specific commissions account in order to later claim it as an
            expense, as this would be claiming commissions twice. This way
            <emphasis>is</emphasis> compatible with using
            <xref linkend="invest-sellLots"></xref>. This results in a
            slightly misleading price being added to the price database (the
            effective price you paid) but is not usually of any concern.</para>
          </listitem>
        </itemizedlist>

        <para>OR</para>

        <itemizedlist>
          <listitem><para><emphasis>Gross Pricing:</emphasis> You enter the
            price not adjusted by commissions and enter the commissions expense
            on a separate split in the transaction. This enables the tracking of
            commissions but is <emphasis>not</emphasis> compatible with using
            <xref linkend="invest-sellLots"></xref>. Scrubbing doesn't know to
            deduct commissions and fees from the gains, so capital gains or
            losses must be manually calculated (see
            <xref linkend="invest-sell-man"></xref>).</para>
          </listitem>
        </itemizedlist>

        <para>Please get professional advice if you are unsure which of these
          ways are applicable to your jurisdiction.
        </para>
      </sect3>

      <sect3 id="invest-buy-gross">
        <title>Example: Buying Shares with Gross Pricing</title>

        <para>In this example you will purchase $5000 of IBM stock, with a
          commission of $100. First step will be to create the stock account for
          IBM. The existing <emphasis>Expenses:Commission</emphasis>
          account will be used. If you wish to track commissions to the
          individual stock level an additional sub-account would be necessary.
          E.g. <emphasis>Expenses:Commission:IBM</emphasis>.
        </para>

        <para>Now for the transaction, on the first (transaction) line, enter
          the <guilabel>Date</guilabel> of the purchase (eg: Jan. 3 2005) and
          <guilabel>Description</guilabel> (eg: Initial IBM Purchase). On the
          first split line, enter 50 in <guilabel>Shares</guilabel>, delete
          <guilabel>Price</guilabel> (leave it empty so it will be calculated)),
          and enter 5000 in <guilabel>Buy</guilabel>. You do not need to fill in
          the <guilabel>Price</guilabel> column, as it will be calculated for
          you when you <keycap>Tab</keycap> to the next split. The next line in
          the split transaction will be <emphasis>Expenses:Commissions
          </emphasis> and fill in <guilabel>Buy</guilabel> ($100). The third
          line will be to transfer $5100 from account <emphasis>
          Assets:Bank ABC</emphasis> to balance the transaction. Your IBM
          Commodity view should now appear like this:
        </para>

        <screenshot id="invest-setup-portfolio2">
          <mediaobject>
             <imageobject role="html">
               <imagedata fileref="figures/invest_SetupPortfolio2.png" format="PNG"
                          srccredit="Chris Good" width="510px"></imagedata>
             </imageobject>
             <imageobject role="fo">
               <imagedata fileref="figures/invest_SetupPortfolio2.png" format="PNG"
                          srccredit="Chris Good"></imagedata>
             </imageobject>

            <textobject>
              <phrase>Setup Current Portfolio</phrase>
            </textobject>

            <caption><para>This image is of the transaction register of the IBM
              account after the first stock <quote>purchase</quote> with a
              commission.</para>
            </caption>
          </mediaobject>
        </screenshot>
      </sect3>

      <sect3 id="invest-buy-net">
        <title>Example: Buying Shares with Net Pricing</title>

        <para>Repeating the previous example using Net Pricing instead of Gross
          Pricing, in Transaction Journal view:
        </para>

        <para>Purchase $5000 of IBM stock being 50 Shares for $100.00 each, plus
          a commission of $100.</para>

        <para>Now for the transaction, on the first (transaction) line, enter
          the <guilabel>Date</guilabel> of the purchase (eg: Jan. 3 2005) and a
          <guilabel>Description</guilabel> (eg: Initial IBM Purchase). On the
          first split line, optionally enter more details in <guilabel>Memo
          </guilabel>, then 50 in <guilabel>Shares</guilabel>, delete
          anything in <guilabel>Price</guilabel> (so it will be calculated by
          dividing <guilabel>Buy</guilabel> by <guilabel>Shares</guilabel> when
          you <keycap>Tab</keycap> out of the split), 5100 in <guilabel>Buy
          </guilabel> (50 * $100.00 + $100). Alternatively use
          &app; to calculate <guilabel>Buy</guilabel>
          by entering the formula <emphasis>5000+100</emphasis> or <emphasis>
          (50 * 100) + 100 </emphasis> in <guilabel>Buy</guilabel> (
          <guilabel>Buy</guilabel> will be calculated when you <keycap>Tab
          </keycap> out of the column. Use the <keycap>Tab</keycap> key as many
          times as needed to proceed to the next split.
        </para>

        <para>
          Do <emphasis>not</emphasis> enter a separate split for Commission as
          it has already been included in the <guilabel>Buy</guilabel> value.
          The second split line will be to transfer from <emphasis>
          Assets:Bank ABC</emphasis> $5100 to balance the transaction. After the
          splits are all correct, use the <keycap function="enter" >Enter
          </keycap> key to save the transaction. Your IBM Commodity view should
          now appear like this:
        </para>

        <screenshot id="invest-setup-portfolio3">
          <mediaobject>
             <imageobject role="html">
               <imagedata fileref="figures/invest_SetupPortfolio3.png" format="PNG"
                          srccredit="Chris Good" width="510px"></imagedata>
             </imageobject>
             <imageobject role="fo">
               <imagedata fileref="figures/invest_SetupPortfolio3.png" format="PNG"
                          srccredit="Chris Good"></imagedata>
             </imageobject>

            <textobject>
              <phrase>Setup Current Portfolio</phrase>
            </textobject>

            <caption><para>This image is of the transaction register of the IBM
              account after the first stock <quote>purchase</quote> with a
              commission.</para>
            </caption>
          </mediaobject>
        </screenshot>
      </sect3>
    </sect2>
  </sect1>

  <sect1 id="invest-stockprice1">
    <title>Setting Share Price</title>

    <para>The value of a commodity, such as a stock, must be explicitly set.
    The stock accounts track the quantity of stocks you own, but the value of
    the stock is stored in the <emphasis>Price Editor</emphasis>. The values
    set in the <guilabel>Price Editor</guilabel> can be updated manually or automatically.</para>

    <sect2 id="invest-stockprice-initial2">
      <title>Initial Price Editor Setup</title>

      <para>To use the <guilabel>Price Editor</guilabel> to track a stock value, you must initially
      insert the stock. To do so, open the <guilabel>Price Editor</guilabel>
      (<menuchoice><guimenu>Tools</guimenu><guimenuitem>Price Editor</guimenuitem></menuchoice>) and
      click on <guibutton>Add</guibutton> button. The first time a
      Commodity/Stock is entered this window will be blank except for the
      control buttons on the bottom. Select the appropriate Commodity you want
      to insert into the <guilabel>Price Editor</guilabel>. At this point, you can input the price
      of the commodity manually. There are 6 fields in the New Commodity
      window:</para>

	<variablelist>
	  <varlistentry>
            <term><guilabel>Namespace</guilabel></term>
	    <listitem>
              <para>The exchange market where the security/commodity
              is traded (in this example NASDAQ)</para>
            </listitem>
	  </varlistentry>

	  <varlistentry>
            <term><guilabel>Security</guilabel></term>
            <listitem>
              <para>The name of the commodity,
              must be chosen from the <guibutton>Select...</guibutton> list</para>
            </listitem>
	  </varlistentry>

	  <varlistentry>
            <term><guilabel>Currency</guilabel></term>
            <listitem>
              <para>The currency in which the
              Price is expressed.</para>
            </listitem>
	  </varlistentry>

	  <varlistentry>
            <term><guilabel>Date</guilabel></term>
            <listitem>
              <para>Date that the price is
              valid</para>
            </listitem>
	  </varlistentry>

	  <varlistentry>
            <term><guilabel>Type</guilabel></term>
            <listitem>
              <para>One of: <guilabel>Bid</guilabel>
              (the market buying price), <guilabel>Ask</guilabel> (the market
              selling price), <guilabel>Last</guilabel> (the last transaction
              price), <guilabel>Net Asset Value</guilabel> (mutual fund price per
              share), or <guilabel>Unknown</guilabel>. Stocks and currencies will
              usually give their quotes as one of bid, ask or last. Mutual funds
              are often given as net asset value. For other commodities, simply
              choose <guilabel>Unknown</guilabel>. This option is for informational purposes only, it
              is not used by &app;.</para>
            </listitem>
	  </varlistentry>

	  <varlistentry>
            <term><guilabel>Price</guilabel></term>
            <listitem>
              <para>The price of one unit of this
              commodity.</para>
            </listitem>
	  </varlistentry>
	</variablelist>

      <para>As an example of adding the AMZN commodity to the price editor,
      with an initial value of $40.50 per share.</para>

      <screenshot id="invest-peditor">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_peditor.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_peditor.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Price Editor</phrase>
          </textobject>

          <caption><para>Adding the AMZN commodity to the price editor, with
          an initial value of $40.50 per share.</para></caption>
        </mediaobject>
      </screenshot>

      <para>Click <guibutton>OK</guibutton> when finished. Once you have
      performed this initial placement of the commodity into the <guilabel>Price Editor</guilabel>,
      you will not have to do it again, even if you use the same commodity in
      another account.</para>

      <note>
        <para>If you have online retrieval of quotes activated (see <xref
        linkend="invest-stockprice-auto2"></xref>), you can initialize a
        commodity without manually making an entry. When you initially add
        the security in the <guilabel>Security Editor</guilabel>, check
        <guibutton>Get Online Quotes</guibutton> and save the security.
        Then, in the <guilabel>Price Editor</guilabel>, click
        <guibutton>Get Quotes</guibutton>, and the new security will be
        inserted into the price list with the retrieved price.</para>
      </note>
    </sect2>

    <sect2 id="invest-stockprice-manual2">
      <title>Setting Stock Price Manually</title>

      <para>If the value of the commodity (stock) changes, you can adjust the
      value by entering the <guilabel>Price Editor</guilabel>, selecting the commodity, clicking on
      <guibutton>Edit</guibutton> and entering the new price.</para>

      <screenshot id="invest-peditor2">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_peditor2.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_peditor2.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Price Editor</phrase>
          </textobject>

          <caption><para>The main price editor window, showing the list of all
          known commodities.</para></caption>
        </mediaobject>
      </screenshot>
    </sect2>

    <sect2 id="invest-stockprice-auto2">
      <title>Configuring for Automatic Retrieval of Quotes</title>

      <para>If you have more than a couple of commodities, you will tire of
      having to update their prices constantly. &app; has the ability to
      automatically download the most recent price for your commodities using
      the Internet. This is accomplished through the <application>Perl</application> module
      <application>Finance::Quote</application>, which must be installed in order to activate this
      feature.</para>

      <para>To determine if the <application>Perl</application> module <application>Finance::Quote</application> is already
      installed on your system, type <command>perldoc Finance::Quote</command> in
      a terminal window and check to see if there is any documentation
      available. If you see the documentation, then the module is installed,
      if you do not see the documentation, then it has not been
      installed.</para>

      <sect3 id="invest-stockprice-auto-install3">
        <title>Installing <application>Finance::Quote</application></title>
	<para><emphasis role="strong">Microsoft Windows:</emphasis>
	<itemizedlist>
	  <listitem>
            <para>Close &app;.</para>
          </listitem>
	  <listitem>
            <para>Run <emphasis role="strong">Install Online Price
            Retrieval</emphasis> which can be found in the
            &app; <quote>Start</quote> menu
            entry.</para>
          </listitem>
	</itemizedlist>
        </para>

	<para><emphasis role="strong">MacOS:</emphasis> You need to
	have XCode installed. XCode is an optional item from your MacOS
	distribution DVD. Run the <emphasis role="strong">Update
	Finance Quote</emphasis> app in the
	&app; dmg. You can run it from the
	dmg or copy it to the same folder to which you copied
	&app;. It will open a Terminal
	window and run a script for you which will ask lots of
	questions. Accept the default for each unless you know what
	you&rsquo;re doing.</para>

        <para><emphasis role="strong">Linux:</emphasis>
	<itemizedlist>
	  <listitem>
            <para>Close any running &app; instances.</para>
          </listitem>
	  <listitem>
            <para>Locate the folder where &app;
            is installed by searching for <application>gnc-fq-update</application></para>
          </listitem>
	  <listitem>
            <para>Change to that directory, open a root shell</para>
          </listitem>
	  <listitem>
            <para>Run the command <command>gnc-fq-update</command></para>
          </listitem>
	</itemizedlist>

	This will launch a <application>Perl</application> CPAN update session that will go out
	onto the internet and install the <application>Finance::Quote</application> module on
	your system. The gnc-fq-update program is interactive,
	however, with most systems you should be able to answer
	<quote>no</quote> to the first question: <quote>Are you ready
	for manual configuration? [yes]</quote> and the update will
	continue automatically from that point.</para>

        <para>After installation is complete, you should run the <quote>gnc-fq-dump</quote>
        test program, in the same directory, distributed with &app; to test
        if <application>Finance::Quote</application> is installed and working properly.</para>

        <note>
          <para>If you feel uncomfortable about performing any of these steps,
          please either email the &app;-user mailing list
          (<email>gnucash-user@gnucash.org</email>) for help or come to the &app; IRC
          channel on irc.gnome.org. You can also leave out this step and
          manually update your stock prices.</para>
        </note>
      </sect3>

      <sect3 id="invest-stockprice-auto-configure3">
        <title>Configuring Securities for Online Quotes</title>

        <para>With <application>Finance::Quote</application> installed and functioning correctly, you
        must configure your &app; securities to use this feature to
        obtain updated price information automatically. Whether creating new securities or modifying securities
        that have already been setup, use the <menuchoice><guimenu>Tools</guimenu><guimenuitem>Security Editor</guimenuitem>
        </menuchoice>, to edit the
        security and check the <guilabel>Get Online Quotes</guilabel> box. You will
        now be able to modify the radio buttons for <guilabel>Type of quote source</guilabel>, the pull-down menus
        to specify the specific source(s) and <guilabel>The timezone for these
        quotes</guilabel>. When finished editing, <guilabel>Close</guilabel> the Security Editor to return to
        the <guilabel>Price Editor</guilabel> and click on the <guibutton>Get Quotes</guibutton>
        button to update your stock prices on the Internet.</para>

        <para>The command <command>gnucash --add-price-quotes $HOME/gnucash-filename</command>
        can be used to fetch the current prices of your stocks.  The file specified
        <filename class="directory">$HOME/gnucash-filename</filename> will depend on the name and location of your
        data file.
        This can be determined by the name displayed in the top frame of the &app; window,
        before the <quote>-</quote>.  The file name can also be found under <guimenu>File</guimenu>
        in the recently opened file list; the first item, numbered 1, is the name of the currently
        open file.</para>

        <para>This can be automated by creating a <application>crontab</application> entry. For example,
        to update your file every Friday evening (16:00) after the relevant exchange
        markets close (modify the time accordingly for your time zone), you could add
        the following to your personal <application>crontab</application>:</para>

        <para>0 16 * * 5 gnucash --add-price-quotes $HOME/gnucash-filename &gt;
        /dev/null 2&gt;&amp;1</para>

        <para>Remember that Mutual Fund <quote>prices</quote> are really <quote>Net Asset
        Value</quote> and require several hours after the exchange closes before being
        available. If <acronym>NAV</acronym>s are downloaded before the current days <acronym>NAV</acronym>s are
        determined, yesterday&rsquo;s <acronym>NAV</acronym>s are retrieved.</para>
      </sect3>
    </sect2>

    <sect2 id="invest-stockprice-view2">
      <title>Displaying Share Value</title>

      <para>The main account window, by default, only shows the quantity of
      each commodity that you own, under the column heading
      <guilabel>Total</guilabel>. In the case of stocks, this commodity is the
      number of shares. Often, however, you will want to see the value of your
      stocks expressed in terms of some monetary unit. This is easily
      accomplished by entering the main window, selecting the <guilabel>Accounts</guilabel> tab,
      by clicking on the <emphasis>Titlebar</emphasis> <guibutton>Options</guibutton> button (the small
      down pointing arrow on the right side of the main account window titles bar), and
      selecting the option to display the account total field <quote>Total
      (USD)</quote>. You will see a new column in the main window entitled
      <guilabel>Total (USD)</guilabel> that will express the value of all
      commodities in the report currency.</para>

      <screenshot id="invest-stockvalue">
        <mediaobject>
           <imageobject role="html">
             <imagedata fileref="figures/invest_stockvalue.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_stockvalue.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Viewing Stock Value</phrase>
          </textobject>

          <caption><para>Viewing the value of a stock commodity in the main
          window using the Total in Report Currency option.</para></caption>
        </mediaobject>
      </screenshot>
    </sect2>

    <sect2 id="invest-stockprice-report">
      <title>The <quote>Price Source</quote> in Reports</title>

      <para>Most &app; reports have options to set/modify a number of parameters for the report.  The
       Options dialog box is displayed by selecting the report tab then clicking on either the <guibutton>Options</guibutton>
       icon in the <emphasis>Menubar</emphasis> or selecting <menuchoice><guimenu>Edit</guimenu><guimenuitem>Report Options</guimenuitem></menuchoice>.
       <guilabel>Price Source</guilabel> determines how accounts denominated in commodities different from the report currency are converted to the report currency. Depending on the report the selector may appear in either the <guilabel>General</guilabel>, the <guilabel>Commodities</guilabel>, or the <guilabel>Display</guilabel> tab of the <guilabel>Report Options</guilabel> dialog box.
       <note>
         <para>In the example below, the report is a customization of
         the <emphasis role="strong">Average Balance</emphasis> report
         in the Assets &amp; Liabilities reports submenu.</para>
       </note>
      <screenshot id="invest-stockvalue-report-options">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_stockvalue_report_options.png"
                       format="PNG" srccredit="John Ralls" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>Determining Stock Price/Currency Exchange Rate Source in Reports</phrase>
          </textobject>

          <caption><para>Determining the value of a stock commodity or
          a currency other than the report currency in a report by
          setting the Price Source option.</para></caption>
        </mediaobject>
      </screenshot>

      <itemizedlist>
        <listitem>
          <para><guilabel>Weighted Average</guilabel>: Calculates the price by summing the absolute value of the amount and the absolute value of every split in every account denominated in the commodity, excluding those splits with a zero amount, and dividing the sum of values by the sum of amounts to obtain a price. For example, if you had a buy transaction for 200 shares of XYZ for a total of 2000 and a sell of 100 for 1300 the weighted average would be 3300/300 or 11/share.
          </para>
          <note><para>Gain/Loss splits have an amount of 0 and are <emphasis>not</emphasis> included in this calculation.</para></note>
        </listitem>
        <listitem>
          <para><guilabel>Average Cost</guilabel>: Calculates the price by summing the amounts and values of every split in every account denominated in the commodity, including the zero amount splits. In the example above, with an additional split (either part of the sale transaction or in a separate transaction) booking the gain at 0 shares and a 300 gain, the average cost is 1000/100 (2000 original cost - 1300 proceeds from the sale + 300 gain)/(200 - 100) shares or 10/share.
          </para>
          
          <note><para>Gain/Loss splits <emphasis>are</emphasis> included in this calculation.
          </para></note>
          <note><para>This is the <emphasis>only</emphasis> <guilabel>Price Source</guilabel> that will balance the <guilabel>Trial Balance Report</guilabel> and in order for it to balance you <emphasis>must</emphasis> correctly book your gains and losses.
          </para></note>
        </listitem>
        <listitem>
          <para><guilabel>Most Recent</guilabel>: Uses the latest price from the price database.</para>
        </listitem>

        <listitem>
          <para><guilabel>Nearest in time</guilabel>: Uses the price nearest in time to the report date&mdash;the datum date for time series reports like <guilabel>Assets Over Time</guilabel>&mdash;from the price database.
          </para>
          <note><para>The nearest date isn&rsquo;t necessarily before the date in question.
          </para></note>
        </listitem>
      </itemizedlist>
      </para>
      <screenshot id="invest-stockvalue-report">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_stockvalue_report.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>An Asset Barchart Report based on the <guilabel>Nearest in
            time</guilabel> Price Source.</phrase>
          </textobject>

          <caption><para>Tracking what value your stocks would&rsquo;ve had on the
          stock exchanges.</para></caption>
        </mediaobject>
      </screenshot>
    </sect2>
  </sect1>

  <sect1 id="invest-sell1">
    <title>Selling Shares</title>

    <para>Entering an investment sale transaction is done in a similar way to
      entering a buy transaction (see <xref linkend="invest-buy-new2" />) except
      the amount entered in the <emphasis>Shares</emphasis> column is negative
      and the proceeds of the transaction is entered in the <emphasis>Sell
      </emphasis> column. The net proceeds from the sale should be
      transferred from the shares account to your bank or brokerage account.
    </para>

    <para>For information on handling <emphasis>commissions</emphasis> and the
      use of <emphasis>Net Pricing</emphasis> or <emphasis>Gross Pricing</emphasis>,
      please see <xref linkend="invest-buy-com" />.
    </para>

    <para>If you will be recording a capital gain or loss on the sale, please
      see <xref linkend="chapter_capgain" /> and <xref linkend="chapter_dep" />
      for more information on this topic.
    </para>

    <para>To use the &app;<emphasis> Automatic
      Calculation of Capital Gain or Loss Using Lots</emphasis> feature, please
      see <xref linkend="invest-sellLots" /> otherwise continue to the next
      section.
    </para>

    <sect2 id="invest-sell-man">
      <title>Selling Shares with Manual Calculation of Capital Gain or Loss
      </title>

      <note>
        <para>In order for &app; to commit the
          zero-share, zero-price split for account <emphasis>Assets:Stock:SYMBOL
          </emphasis> to the transaction in the following schemes, you *must*
          <keycap>Tab</keycap> out of that split. If you use the
          <keycap function="enter">Enter</keycap> key,
          &app; will convert the split into shares of the commodity.
        </para>
      </note>

      <para>In the schemes of transaction splits presented below, the
        following symbols are used:
      </para>

      <itemizedlist>
        <listitem><para>NUM_SHARES: number of shares you are selling</para>
        </listitem>

        <listitem><para>COMMISSION: brokerage commissions or fees</para>
        </listitem>

        <listitem><para>GROSS_SELL_PRICE: unit price for which you sold the
          shares, not reduced by COMMISSION</para>
        </listitem>

        <listitem>
          <para>NET_SELL_PRICE: unit price for which you sold the shares,
            reduced by COMMISSION</para>
        </listitem>

        <listitem>
          <para>GROSS_BUY_PRICE: unit price for which you bought the shares,
            not increased by COMMISSION</para>
        </listitem>

        <listitem>
          <para>NET_BUY_PRICE: unit price for which you bought the shares,
            increased by COMMISSION</para>
        </listitem>

        <listitem><para>GROSS_BUY: total price for which you bought shares,
          excluding COMMISSION, equal to NUM_SHARES * GROSS_BUY_PRICE</para>
        </listitem>

        <listitem>
          <para>NET_BUY: amount of money for which you bought shares
            including COMMISSION, equal to GROSS_BUY + COMMISSION.</para>
        </listitem>

        <listitem><para>GROSS_SALE: total price for which you sold shares,
          equal to NUM_SHARES * GROSS_SELL_PRICE</para>
        </listitem>

        <listitem>
          <para>NET_SALE: amount of money received from the sale, equal to
            GROSS_SALE &minus; COMMISSION</para>
        </listitem>

        <listitem>
          <para>GROSS_PROFIT: amount of money you made on the sale, not
            reduced by COMMISSION</para>
        </listitem>

        <listitem>
          <para>NET_PROFIT: amount of money you made on the sale, reduced by
            COMMISSION</para>
        </listitem>
      </itemizedlist>

      <para>There are 2 ways of manually recording the capital gain or loss.
        The capital gain/loss can be combined with the sale in one transaction
        or it can be entered in a separate transaction.

      </para>

      <sect3 id="invest-sell-man-comb">
        <title>Combine the Sale and Capital Gain/Loss in One Transaction</title>

        <para>This has the advantage that all parts of the sale event are kept
          together. This is <emphasis>not</emphasis> compatible with using
          <emphasis>scrubbing</emphasis>
          (see <xref linkend="invest-sellLots" />). If you may in future use
          scrubbing on a specific security, save some work later by entering the
          capital gain/loss splits in a separate transaction now.
        </para>

        <para>When the capital gain/loss splits are combined with the sale
          splits in one transaction, there are 2 splits for the security
          account in the same transaction, so the transaction must be entered
          with the security register in <guilabel> Auto-Split Ledger</guilabel>
          or <guilabel>Transaction Journal</guilabel> view. One of the splits
          for the security account is for the sale and the other is for the
          capital gain or loss. The security account split for the capital gain
          or loss must be entered with 0 number of shares and 0 price per share
          to stop the automatic recalculation of these fields.
        </para>

        <para>
          Account for the profit or loss as coming from an
          <emphasis>Income:Capital Gains</emphasis> or
          <emphasis>Expenses:Capital Loss</emphasis> account.
        </para>

        <sect4 id="invest-sell-man-comb-gr">
          <title>Combined, Gross Pricing</title>

          <table>
            <title>Selling Shares Split Scheme, Sale and Capital Gain/Loss Are
              Combined, Gross Pricing</title>

            <tgroup cols="5">
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
              <tbody>
                <row>
                  <entry><emphasis>Account</emphasis></entry>
                  <entry><emphasis>Number of Shares</emphasis></entry>
                  <entry><emphasis>Share Price</emphasis></entry>
                  <entry><emphasis>Total Buy</emphasis></entry>
                  <entry><emphasis>Total Sell</emphasis></entry>
                </row>

                <row>
                  <entry>Assets:Bank ABC</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>NET_SALE</entry>
                  <entry></entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>0</entry>
                  <entry>0</entry>
                  <entry>GROSS_PROFIT</entry>
                  <entry>(Loss)</entry>
                </row>

                <row>
                  <entry>Expenses:Commission</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>COMMISSION</entry>
                  <entry></entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>&minus;NUM_SHARES</entry>
                  <entry>GROSS_SELL_PRICE</entry>
                  <entry></entry>
                  <entry>GROSS_SALE</entry>
                </row>

                <row>
                  <entry>Income:Capital Gains</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>(Loss)</entry>
                  <entry>GROSS_PROFIT</entry>
                </row>
              </tbody>
            </tgroup>
          </table>
        </sect4>

        <sect4 id="invest-sell-man-comb-net">
          <title>Combined, Net Pricing</title>

          <table>
            <title>Selling Shares Split Scheme, Sale and Capital Gain/Loss Are
              Combined, Net Pricing</title>

            <tgroup cols="5">
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
              <tbody>
                <row>
                  <entry><emphasis>Account</emphasis></entry>
                  <entry><emphasis>Number of Shares</emphasis></entry>
                  <entry><emphasis>Share Price</emphasis></entry>
                  <entry><emphasis>Total Buy</emphasis></entry>
                  <entry><emphasis>Total Sell</emphasis></entry>
                </row>

                <row>
                  <entry>Assets:Bank ABC</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>NET_SALE</entry>
                  <entry></entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>0</entry>
                  <entry>0</entry>
                  <entry>NET_PROFIT</entry>
                  <entry>(Loss)</entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>&minus;NUM_SHARES</entry>
                  <entry>NET_SELL_PRICE</entry>
                  <entry></entry>
                  <entry>NET_SALE</entry>
                </row>

                <row>
                  <entry>Income:Capital Gain</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>(Loss)</entry>
                  <entry>NET_PROFIT</entry>
                </row>

              </tbody>
            </tgroup>
          </table>
        </sect4>
      </sect3>

      <sect3 id="invest-sell-man-sep">
        <title>Separate the Capital Gain/Loss Transaction from the Sale
          Transaction.</title>

        <para>This is <emphasis>required</emphasis> if using <emphasis>scrubbing
          </emphasis> to automatically calculate and create capital gain/loss
          transactions (otherwise scrubbing will not detect them and will create
          an incorrectly valued gain/loss transaction).
        </para>

        <sect4 id="invest-sell-man-sep-gr">
          <title>Separated, Gross Pricing</title>

          <table>
            <title>Selling Shares Split Scheme, Sale and Capital Gain/Loss Are
              Separate Transactions, Sale Transaction</title>

            <tgroup cols="5">
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
              <tbody>
                <row>
                  <entry><emphasis>Account</emphasis></entry>
                  <entry><emphasis>Number of Shares</emphasis></entry>
                  <entry><emphasis>Share Price</emphasis></entry>
                  <entry><emphasis>Total Buy</emphasis></entry>
                  <entry><emphasis>Total Sell</emphasis></entry>
                </row>

                <row>
                  <entry>Assets:Bank ABC</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>NET_SALE</entry>
                  <entry></entry>
                </row>

                <row>
                  <entry>Expenses:Commission</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>COMMISSION</entry>
                  <entry></entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>&minus;NUM_SHARES</entry>
                  <entry>GROSS_SELL_PRICE</entry>
                  <entry></entry>
                  <entry>GROSS_SALE</entry>
                </row>
              </tbody>
            </tgroup>
          </table>

          <table>
            <title>Selling Shares Split Scheme, Sale and Capital Gain/Loss Are
              Separate Transactions, Capital Gain/Loss Transaction</title>

            <tgroup cols="5">
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
              <tbody>
                <row>
                  <entry><emphasis>Account</emphasis></entry>
                  <entry><emphasis>Number of Shares</emphasis></entry>
                  <entry><emphasis>Share Price</emphasis></entry>
                  <entry><emphasis>Total Buy</emphasis></entry>
                  <entry><emphasis>Total Sell</emphasis></entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>0</entry>
                  <entry>0</entry>
                  <entry>GROSS_PROFIT</entry>
                  <entry>(Loss)</entry>
                </row>

                <row>
                  <entry>Income:Capital Gain</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>(Loss)</entry>
                  <entry>GROSS_PROFIT</entry>
                </row>
              </tbody>
            </tgroup>
          </table>
        </sect4>

        <sect4 id="invest-sell-man-sep-net">
          <title>Separated, Net Pricing</title>

          <table>
            <title>Selling Shares Split Scheme, Sale and Capital Gain/Loss Are
              Separate Transactions, Sale Transaction</title>

            <tgroup cols="5">
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
              <tbody>
                <row>
                  <entry><emphasis>Account</emphasis></entry>
                  <entry><emphasis>Number of Shares</emphasis></entry>
                  <entry><emphasis>Share Price</emphasis></entry>
                  <entry><emphasis>Total Buy</emphasis></entry>
                  <entry><emphasis>Total Sell</emphasis></entry>
                </row>

                <row>
                  <entry>Assets:Bank ABC</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>NET_SALE</entry>
                  <entry></entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>&minus;NUM_SHARES</entry>
                  <entry>NET_SELL_PRICE</entry>
                  <entry></entry>
                  <entry>NET_SALE</entry>
                </row>
              </tbody>
            </tgroup>
          </table>

          <table>
            <title>Selling Shares Split Scheme, Sale and Capital Gain/Loss Are
              Separate Transactions, Capital Gain/Loss Transaction</title>

            <tgroup cols="5">
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
                      <colspec colnum="1" colwidth="2*"/>
              <tbody>
                <row>
                  <entry><emphasis>Account</emphasis></entry>
                  <entry><emphasis>Number of Shares</emphasis></entry>
                  <entry><emphasis>Share Price</emphasis></entry>
                  <entry><emphasis>Total Buy</emphasis></entry>
                  <entry><emphasis>Total Sell</emphasis></entry>
                </row>

                <row>
                  <entry>Assets:Stock:SYMBOL</entry>
                  <entry>0</entry>
                  <entry>0</entry>
                  <entry>NET_PROFIT</entry>
                  <entry>(Loss)</entry>
                </row>

                <row>
                  <entry>Income:Capital Gain</entry>
                  <entry></entry>
                  <entry></entry>
                  <entry>(Loss)</entry>
                  <entry>NET_PROFIT</entry>
                </row>
              </tbody>
            </tgroup>
          </table>
        </sect4>
      </sect3>
    </sect2>

    <sect2 id="invest-sell-man-examples">
      <title>Examples of Selling Shares with Manually Entry of Capital Gain or
        Loss</title>

      <para>In these examples we will use the AMZN account created in the
        previous section.
      </para>

      <sect3 id="invest-sell-man-prof-comb-gross">
        <title>Example: Sale of Shares with Profit, Manual Profit/Loss
          Calculation, Sale &amp; Profit Combined, Gross Pricing</title>

        <para>In this example you bought 100 shares of AMZN for $20 per share,
          then later sell them all for $36 per share with a commission of $75.
          In the split transaction scheme above, GROSS_BUY_PRICE is $20 (the
          original buying price), NUM_SHARES is 100, GROSS_BUY is $2000 (the
          original buying cost), GROSS_SALE is $3600, and finally GROSS_PROFIT
          is $1600 (GROSS_SALE &minus; GROSS_BUY).
        </para>

        <table>
          <title>Selling Shares Split Scheme, Sale &amp; Gain Combined, Gross
            Pricing</title>

          <?dbfo table-width="70%" ?>

          <tgroup cols="5">
                  <colspec colnum="1" colwidth="4*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="1*"/>
                  <colspec colnum="1" colwidth="1*"/>
            <tbody>
              <row>
                <entry><emphasis>Account</emphasis></entry>
                <entry><emphasis>Shares</emphasis></entry>
                <entry><emphasis>Price</emphasis></entry>
                <entry><emphasis>Buy</emphasis></entry>
                <entry><emphasis>Sell</emphasis></entry>
              </row>

              <row>
                <entry>Assets:Bank ABC</entry>
                <entry></entry>
                <entry></entry>
                <entry>3525.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>0</entry>
                <entry>0</entry>
                <entry>1600.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Expenses:Commission</entry>
                <entry></entry>
                <entry></entry>
                <entry>75.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>&minus;100</entry>
                <entry>36.00</entry>
                <entry></entry>
                <entry>3600.00</entry>
              </row>

              <row>
                <entry>Income:Capital Gain (Long Term):AMZN</entry>
                <entry></entry>
                <entry></entry>
                <entry></entry>
                <entry>1600.00</entry>
              </row>
            </tbody>
          </tgroup>
        </table>

        <screenshot id="invest-sellstockManProfComb">
          <mediaobject>
             <imageobject role="html">
               <imagedata fileref="figures/invest_sellstock.png" format="PNG"
                          srccredit="Chris Good" width="510px"></imagedata>
             </imageobject>
             <imageobject role="fo">
               <imagedata fileref="figures/invest_sellstock.png" format="PNG"
                          srccredit="Chris Good"></imagedata>
             </imageobject>

            <textobject>
              <phrase>Selling Shares Example</phrase>
            </textobject>

            <caption><para>An example of selling shares for gain. You bought 100
              shares of AMZN for $20 per share, and sold for $36.</para>
            </caption>
          </mediaobject>
        </screenshot>

        <note><para>In the above screenshot, it appears there are 2 transactions
          for Mar 21st 2006. This is because the register is in <guilabel>
          Auto-Split Ledger</guilabel> view and there are 2 splits for the
          register account in the 1 transaction. <guilabel>Transaction Journal
          </guilabel> view may be clearer. Refer to
          <xref linkend="txns-registers-txntypes" />. As there are 2 splits for
          the register account in the sale transaction, this transaction must be
          entered in <guilabel>Auto-Split Ledger</guilabel> or <guilabel>
          Transaction Journal</guilabel> view. It cannot be entered in
          <guilabel>Basic Ledger</guilabel> view.</para>
        </note>

        <para> </para>

        <screenshot id="invest-sellstockManProfComb2">
          <mediaobject>
            <imageobject role="html">
               <imagedata fileref="figures/invest_sellstock2.png" format="PNG"
                          srccredit="Chris Good" width="510px"></imagedata>
             </imageobject>
             <imageobject role="fo">
               <imagedata fileref="figures/invest_sellstock2.png" format="PNG"
                          srccredit="Chris Good"></imagedata>
             </imageobject>

            <textobject>
              <phrase>Selling Shares Example</phrase>
            </textobject>

            <caption><para>An image of the account tree after the example of
            selling shares for gain. </para></caption>
          </mediaobject>
        </screenshot>
      </sect3>

      <sect3 id="invest-sell-man-prof-comb-net">
        <title>Example: Sale of Shares with Profit, Manual Profit/Loss
          Calculation, Sale &amp; Profit Combined, Net Pricing</title>

        <para>In this example you bought 100 shares of AMZN for $20 per share
          (including commissions), then later sell them all for $36 per share
          with a commission of $75. In the split transaction scheme above,
          NUM_SHARES is 100, NET_BUY_PRICE is $20 (the original buying price),
          NET_BUY is $2000 (the original buying cost), NET_SELL_PRICE is $35.25
          (($3600 &minus; $75) / 100)), GROSS_SALE is $3600, NET_SALE is $3525,
          and finally NET_PROFIT is $1525 (NET_SALE &minus; NET_BUY).
        </para>

        <table>
          <title>Selling Shares Split Scheme, Sale &amp; Gain Combined, Net
            Pricing</title>

          <?dbfo table-width="70%" ?>

          <tgroup cols="5">
                  <colspec colnum="1" colwidth="4*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="1*"/>
                  <colspec colnum="1" colwidth="1*"/>
            <tbody>
              <row>
                <entry><emphasis>Account</emphasis></entry>
                <entry><emphasis>Shares</emphasis></entry>
                <entry><emphasis>Price</emphasis></entry>
                <entry><emphasis>Buy</emphasis></entry>
                <entry><emphasis>Sell</emphasis></entry>
              </row>

              <row>
                <entry>Assets:Bank ABC</entry>
                <entry></entry>
                <entry></entry>
                <entry>3525.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>0</entry>
                <entry>0</entry>
                <entry>1525.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>&minus;100</entry>
                <entry>35.25</entry>
                <entry></entry>
                <entry>3525.00</entry>
              </row>

              <row>
                <entry>Income:Capital Gain (Long Term):AMZN</entry>
                <entry></entry>
                <entry></entry>
                <entry></entry>
                <entry>1525.00</entry>
              </row>
            </tbody>
          </tgroup>
        </table>

        <screenshot id="invest-sellstockManProfCombNet">
          <mediaobject>
             <imageobject role="html">
               <imagedata fileref="figures/invest_sellstockManProfCombNet.png" format="PNG"
                          srccredit="Chris Good" width="510px"></imagedata>
             </imageobject>
             <imageobject role="fo">
               <imagedata fileref="figures/invest_sellstockManProfCombNet.png" format="PNG"
                          srccredit="Chris Good"></imagedata>
             </imageobject>

            <textobject>
              <phrase>Selling Shares Example</phrase>
            </textobject>

            <caption><para>An example of selling shares for gain using net
              pricing in transaction journal view. You bought 100 shares of AMZN
              for $20 per share, and sold for $36.</para>
            </caption>
          </mediaobject>
        </screenshot>

        <para> </para>
      </sect3>

      <sect3 id="invest-sell-man-prof-sep-gross">
        <title>Example: Sale of Shares with Profit, Manual Profit/Loss
          Calculation, Sale &amp; Profit Separated, Gross Pricing</title>

        <para>You bought 100 shares of AMZN for $20 per share and commissions
          $20, then later sell them all for $36 per share with a commission of
          $75. In the split transaction scheme above, GROSS_BUY_PRICE is $20
          (the original buying price), NUM_SHARES is 100, GROSS_BUY is $2000
          (the original buying cost), GROSS_SALE is $3600, and finally
          GROSS_PROFIT is $1600 (GROSS_SALE &minus; GROSS_BUY).
        </para>

        <table>
          <title>Selling Shares Split Scheme, Sale Transaction, Gross Pricing</title>

          <?dbfo table-width="70%" ?>

          <tgroup cols="5">
                  <colspec colnum="1" colwidth="4*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="1*"/>
                  <colspec colnum="1" colwidth="1*"/>
            <tbody>
              <row>
                <entry><emphasis>Account</emphasis></entry>
                <entry><emphasis>Shares</emphasis></entry>
                <entry><emphasis>Price</emphasis></entry>
                <entry><emphasis>Buy</emphasis></entry>
                <entry><emphasis>Sell</emphasis></entry>
              </row>

              <row>
                <entry>Assets:Bank ABC</entry>
                <entry></entry>
                <entry></entry>
                <entry>3525.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Expenses:Commission</entry>
                <entry></entry>
                <entry></entry>
                <entry>75.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>&minus;100</entry>
                <entry>36.00</entry>
                <entry></entry>
                <entry>3600.00</entry>
              </row>
            </tbody>
          </tgroup>
        </table>

        <table>
          <title>Selling Shares Split Scheme, Gain Transaction, Gross Pricing</title>

          <?dbfo table-width="70%" ?>

          <tgroup cols="5">
                  <colspec colnum="1" colwidth="4*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="1*"/>
                  <colspec colnum="1" colwidth="1*"/>
            <tbody>
              <row>
                <entry><emphasis>Account</emphasis></entry>
                <entry><emphasis>Shares</emphasis></entry>
                <entry><emphasis>Price</emphasis></entry>
                <entry><emphasis>Buy</emphasis></entry>
                <entry><emphasis>Sell</emphasis></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>0</entry>
                <entry>0</entry>
                <entry>1600.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Income:Capital Gain (Long Term):AMZN</entry>
                <entry></entry>
                <entry></entry>
                <entry></entry>
                <entry>1600.00</entry>
              </row>
            </tbody>
          </tgroup>
        </table>

        <screenshot id="invest-sellstockManProfSep">
          <mediaobject>
             <imageobject role="html">
               <imagedata fileref="figures/invest_sellstockManProfSep.png" format="PNG"
                          srccredit="Chris Good" width="510px"></imagedata>
             </imageobject>
             <imageobject role="fo">
               <imagedata fileref="figures/invest_sellstockManProfSep.png" format="PNG"
                          srccredit="Chris Good"></imagedata>
             </imageobject>

            <textobject>
              <phrase>Selling Shares Example</phrase>
            </textobject>

            <caption><para>An example of selling shares for gain where the sale
              and gain are recorded in separate transactions, in <guilabel>
              Transaction Journal</guilabel> view. You bought 100 shares of AMZN
              for $20 per share, and sold for $36.</para>
            </caption>
          </mediaobject>
        </screenshot>
      </sect3>

      <sect3 id="invest-sell-man-prof-sep-net">
        <title>Example: Sale of Shares with Profit, Manual Profit/Loss
          Calculation, Sale &amp; Profit Separated, Net Pricing</title>

        <para>You bought 100 shares of AMZN for $20 per share (including
          commissions), then later sell them all for $36 per share with a
          commission of $75. In the split transaction scheme above, NUM_SHARES
          is 100, NET_BUY_PRICE is $20 (the original buying price), NET_BUY is
          $2000 (the original buying cost), NET_SELL_PRICE is $35.25
          (($3600 &minus; $75) / 100)), GROSS_SALE is $3600, NET_SALE is $3525,
          and finally NET_PROFIT is $1525 (NET_SALE &minus; NET_BUY).
        </para>

        <table>
          <title>Selling Shares Split Scheme, Sale Transaction, Net Pricing</title>

          <?dbfo table-width="70%" ?>

          <tgroup cols="5">
                  <colspec colnum="1" colwidth="4*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="1*"/>
                  <colspec colnum="1" colwidth="1*"/>
            <tbody>
              <row>
                <entry><emphasis>Account</emphasis></entry>
                <entry><emphasis>Shares</emphasis></entry>
                <entry><emphasis>Price</emphasis></entry>
                <entry><emphasis>Buy</emphasis></entry>
                <entry><emphasis>Sell</emphasis></entry>
              </row>

              <row>
                <entry>Assets:Bank ABC</entry>
                <entry></entry>
                <entry></entry>
                <entry>3525.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>&minus;100</entry>
                <entry>35.25</entry>
                <entry></entry>
                <entry>3525.00</entry>
              </row>
            </tbody>
          </tgroup>
        </table>

        <table>
          <title>Selling Shares Split Scheme, Gain Transaction, Net Pricing</title>

          <?dbfo table-width="70%" ?>

          <tgroup cols="5">
                  <colspec colnum="1" colwidth="4*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="2*"/>
                  <colspec colnum="1" colwidth="1*"/>
                  <colspec colnum="1" colwidth="1*"/>
            <tbody>
              <row>
                <entry><emphasis>Account</emphasis></entry>
                <entry><emphasis>Shares</emphasis></entry>
                <entry><emphasis>Price</emphasis></entry>
                <entry><emphasis>Buy</emphasis></entry>
                <entry><emphasis>Sell</emphasis></entry>
              </row>

              <row>
                <entry>Assets:Brokerage Account:Stock:AMZN</entry>
                <entry>0</entry>
                <entry>0</entry>
                <entry>1525.00</entry>
                <entry></entry>
              </row>

              <row>
                <entry>Income:Capital Gain (Long Term):AMZN</entry>
                <entry></entry>
                <entry></entry>
                <entry></entry>
                <entry>1525.00</entry>
              </row>
            </tbody>
          </tgroup>
        </table>

        <screenshot id="invest-sellstockManProfSepNet">
          <mediaobject>
             <imageobject role="html">
               <imagedata fileref="figures/invest_sellstockManProfSepNet.png" format="PNG"
                          srccredit="Chris Good" width="510px"></imagedata>
             </imageobject>
             <imageobject role="fo">
               <imagedata fileref="figures/invest_sellstockManProfSep.png" format="PNG"
                          srccredit="Chris Good"></imagedata>
             </imageobject>

            <textobject>
              <phrase>Selling Shares Example</phrase>
            </textobject>

            <caption><para>An example of selling shares for gain where the sale and
              gain are recorded in separate transactions, in <guilabel>Transaction
              Journal</guilabel> view. You bought 100 shares of AMZN for $20 per
              share, and sold for $36.</para>
            </caption>
          </mediaobject>
        </screenshot>
      </sect3>
    </sect2>

    <sect2 id="invest-sellLots">
      <title>Selling Shares with Automatic Calculation of Capital Gain or Loss
        Using Lots</title>

      <sect3 id="invest-sellLotsIntro">
        <title>Introduction</title>

        <para>
          <ulink url="&url-wp-en;Lot">Wikipedia</ulink>
          includes the following definition of a lot
        </para>
        <para><quote>a set of goods for sale together in an auction; or a
          quantity of a financial instrument</quote>.
        </para>

        <para>
          &app; has a built-in lot management
          facility that can be used to keep track of capital gains or losses
          resulting from security sales. Buy and sell transactions are put into
          lots for the purpose of calculating the cost of the sale. More
          specifically, a lot is used to link particular buy and sell
          transaction splits. Lots can be automatically or manually created and
          linked. Capital gain or loss can be automatically calculated and
          transaction(s) created for the difference between the sale value and
          the cost of the securities sold. &app;
          refers to this process as <emphasis>scrubbing</emphasis>.
        </para>

        <para>The term <emphasis>scrub</emphasis> is used because security
          accounts need to be cleaned after sales to ensure the difference
          between the cost paid for securities, and value received from selling
          them, is accounted for as capital gain or loss. If the capital
          gain/loss is not correct, the Trial Balance
          (<menuchoice>
            <guimenu>Reports</guimenu>
            <guisubmenu>Income &amp; Expense</guisubmenu>
            <guimenuitem>Trial Balance</guimenuitem>
          </menuchoice>) bottom line total debits will not balance to
            total credits.
        </para>

        <note><para>If you make an error, you can delete the lot(s) and capital
          gain/loss transaction(s) and retry. Ensure you delete the lot, or at
          least unlink sale transactions from the lot, before you delete a
          capital gain/loss transaction. Otherwise, the <guilabel>Lots in
          Account</guilabel> screen will recreate the capital gain/loss
          transaction when you select the lot.</para>
        </note>

        <para>
          If you are not familiar with FIFO, LIFO or Average costing, please see
          Wikipedia <ulink
            url="&url-wp-en;FIFO_and_LIFO_accounting">
            FIFO and LIFO accounting</ulink> and <ulink
            url="&url-wp-en;Average_cost_method">
              Average cost method</ulink>.
        </para>

        <para>
          If you are not familiar with the difference between
          &app; transactions and splits, please see
          <xref linkend="txns-registers-txntypes" />.
        </para>

        <para>
          The &app; lot management facility can be a
          useful feature, reducing manual calculation, especially if dividends
          have been reinvested over years and there are many different costs
          involved. It can automatically link buy transactions to sell
          transactions using FIFO cost method and one can manually link specific
          buy transactions to sell transactions in order to use LIFO.
          Advanced Portfolio Report basis costs and gains/losses will agree with
          the costs and gain/loss transactions created by scrubbing if either
          the FIFO or LIFO cost methods are used.
        </para>
      </sect3>

      <sect3 id="invest-sellLotsWin">
        <title>Lots in Account Window</title>
        <para>
          The <guilabel>Lots in Account SSSS</guilabel> window, where SSSS is
          a security account, is used to manually or automatically link
          security transaction splits to lots and create capital gain/loss
          transactions to account for the difference between the costs of buying
          a security and the value received by selling it.
        </para>

        <para>To open the <guilabel>Lots in Account</guilabel> window, open the
          security account register, then select
          <menuchoice>
            <guimenu>Actions</guimenu>
            <guimenuitem>View Lots</guimenuitem>
          </menuchoice>.
        </para>

        <figure pgwide="1">
          <title>Selling Shares - Capital Gains - Lots in Account window
          </title>
          <screenshot id="tool-lotsInAcct">
            <mediaobject>
              <imageobject role="html">
              <imagedata fileref="figures/investLots2_BeforeScrub1Lot.png"
                format="PNG" srccredit="Chris Good" width="510px"></imagedata>
              </imageobject>
              <imageobject role="fo">
                <imagedata fileref="figures/investLots2_BeforeScrub1Lot.png"
                           format="PNG" srccredit="Chris Good" ></imagedata>
              </imageobject>

              <textobject>
                <phrase>Example of Lots in Account window</phrase>
              </textobject>

              <caption><para>An image of the <emphasis>Lots in Account
                </emphasis> window.</para>
              </caption>
            </mediaobject>
          </screenshot>
        </figure>

        <para>Refer to the Help Manual, Chapter 8 Tools &amp; Assistants,
          <ulink
url="https://www.gnucash.org/docs/v&series-stable;/C/gnucash-help/tool-lots.html">
            Lots in Account
          </ulink> for details of the Lots in Account screen elements.
        </para>
      </sect3>

      <sect3 id="invest-sellProcedure">
        <title>Procedure Summary</title>

        <para>Using the lot management facility for the automatic calculation of
          capital gain or loss typically follows these steps:
        </para>

        <orderedlist>
          <listitem>
            <para>Record the sale transaction using Net Pricing (but stop short
              of entering the Capital Gain transaction as it will be created by
              scrubbing). See <xref linkend="invest-sell-man-prof-sep-net" />.
            </para>
          </listitem>

          <!-- Manual Lot Creation and Linking -->
          <listitem><para><xref linkend="invest-sellManual" />  (Optional
            depending on cost method)</para>
          </listitem>

          <listitem>
            <!-- Automatic Creation of Capital Gain Or Loss Transactions -->
            <para><xref linkend="invest-sellAuto" /></para>
          </listitem>

          <listitem>
            <!-- Change Orphaned Gains-CCC to Gain/Loss Account -->
            <para><xref linkend="invest-sellChgCapGainsAcct" /></para>
          </listitem>

          <listitem>
            <!-- Run a Trial Balance  -->
            <para><xref linkend="invest-sellTrialBal" /> report to ensure total
              debits balance to total credits</para>
          </listitem>

        </orderedlist>
      </sect3>

      <sect3 id="invest-sellManual">
        <title>Manual Lot Creation and Linking</title>

        <para>Before using this feature, ensure you have read
          <xref linkend="invest-sellConsiderations" />.
        </para>

        <para>This functionality allows the manual linking of specfic buy and
          sell transactions. It may be used in the case where a user wishes to
          use a different cost method than the automatic linking method (FIFO).
          Effectively, if one wishes the cost basis and capital gains in the
          Advanced Portfolio Report to be consistent with the capital gains
          transactions created by scrubbing, manual lot creation only needs to
          be used when using LIFO or <quote>sale of designated lots</quote>
          (the same thing for securities as far as US personal tax law is
          concerned). This is because the scrub function can automatically do
          FIFO linking so there is no need to do it manually and scrubbing
          cannot be used for average costing.
        </para>

        <para>See <xref linkend="invest-sellManualExample" />.
        </para>
      </sect3>

      <sect3 id="invest-sellAuto">
        <title>Automatic Creation of Capital Gain Or Loss Transactions</title>
        <note><para>Do <emphasis>NOT</emphasis> do this unless you are using
          FIFO or LIFO to cost sales. See
          <xref linkend="invest-sellConsiderations" /></para>
        </note>

        <para>&app; can automatically calculate and
          create security sale capital gain/loss transactions. Lots are used to
          link buy transaction splits with sell transaction splits so the
          correct cost of the securities sold can be determined.
          &app; will use any existing lots, and
          create new lots for any buy transaction splits not already linked to a
          lot. Buy and sell transaction splits are linked to lots using FIFO
          method.
        </para>

        <para>See:</para>
        <para><xref linkend="invest-sellAutoExample" /></para>
        <para><xref linkend="invest-sellAutoExample2" /></para>
        <para><xref linkend="invest-sellFifoSplit" /></para>
      </sect3>

      <sect3 id="invest-sellChgCapGainsAcct">
        <title>Change Orphaned Gains-CCC to Gain/Loss Account</title>

        <para>
          The capital gain/loss transaction(s) created by scrubbing uses an
          automatically created generic <emphasis>Orphaned Gains-CCC</emphasis>
          account (where CCC is the security currency) because
          &app; doesn't know which capital gain or loss account
          should be used. After scrubbing, the user should edit the <emphasis>
          Orphaned Gains-CCC</emphasis> transaction split to re-assign the
          income account to a more meaningful income (or expense) gain or loss
          account (e.g. <emphasis>Income:Long Term Capital Gain:IBM</emphasis>).
        </para>

        <para>See <xref linkend="invest-sellChgCapGainsAcctExample" />.
        </para>
      </sect3>

      <sect3 id="invest-sellTrialBal">
        <title>Run a Trial Balance</title>
        <para>Running a Trial Balance report
          (<menuchoice>
            <guimenu>Reports</guimenu>
            <guisubmenu>Income &amp; Expense</guisubmenu>
            <guimenuitem>Trial Balance</guimenuitem>
          </menuchoice>) after creating capital gain/loss
          transactions, is a basic check that capital gains/losses are
          correctly accounting for the difference between the cost paid for
          securities, and value received from selling them. At the end of the
          report, total debits should equal total credits.
        </para>

        <tip>
          <para>A Trial Balance may not balance due to some other problem. To
            determine if the cause of an imbalance is from incorrectly
            accounting for capital gain/loss:
          </para>

          <para>If necessary, temporarily change the date of the sell
            transaction and the capital gain/loss transaction, so they are
            the only transactions for a particular date, then run the Trial
            Balance as at the day before. If the Trial Balance is still out
            by the same amount, it is not the capital gain/loss that is
            causing the problem.
          </para>

          <para>If you find a prior <emphasis>out of balance
            </emphasis> Trial Balance, keep running the Trial Balance
            report with different dates until you find the date it starts
            being out of balance. Temporarily change the transaction dates
            for each transaction on the problem date to the following
            day, then change the dates back to the correct date 1 at a time,
            running the Trial Balance each time, until you identify the
            problem transaction. When you change the date of a security
            sell transaction, you also need to change the date of the
            corresponding capital gain transaction as it is only the
            sum of these that will balance in the Trial Balance.
          </para>
        </tip>
      </sect3>

      <sect3 id="invest-sellConsiderations">
        <title>Considerations</title>

        <para>There are some points that should be considered before using the
          lot management facility.
        </para>

        <orderedlist>
          <listitem>
            <para>&app; implements only the First In/
              First Out (FIFO) cost method when automatically linking buy
              transactions to sell transactions. I.e. The oldest securities are
              always sold first. The Last In First Out (LIFO) cost method may be
              used by manually linking the most recent buy security splits to
              the sell split before scrubbing.
            </para>
          </listitem>

          <listitem>
            <para>The Advanced Portfolio Report does not use lot information
              when calculating costs, just the security transaction splits. It
              calculates the cost basis and gains or losses using the selected
              <emphasis>Basis calculation method</emphasis> report option
              (Average, FIFO or LIFO). If one wishes the Advanced Portfolio
              Report costs and gains/losses to be consistent with the capital
              gain/loss transactions created by scrubbing, the same cost model
              must be used in both places.
            </para>
         </listitem>

         <listitem>
           <para>
             Scrubbing does not recognize commissions or fees so makes no
             allowance for them in the calculation of gain or loss. Therefore
             you must use <emphasis>Net Pricing</emphasis> rather than
             <emphasis>Gross Pricing</emphasis> if you wish to use scrubbing.
             See <xref linkend="invest-buy-com" />.
           </para>

         </listitem>

          <listitem>
            <para>Scrubbing does not recognize capital gain/loss transaction
              splits if they have been manually entered as part of the sale
              transaction. Therefore ensure previous sales are recorded as 2
              transactions:
            </para>

            <table>
              <title>Transaction 1 dealing with value received and the reduction
                of the number of shares
              </title>
              <tgroup cols="5">
                <tbody>
                  <row>
                    <entry><emphasis>Account</emphasis></entry>
                    <entry><emphasis>Tot Shares</emphasis></entry>
                    <entry><emphasis>(Unit) Price</emphasis></entry>
                    <entry><emphasis>Buy (Debit)</emphasis></entry>
                    <entry><emphasis>Sell (Credit)</emphasis></entry>
                  </row>
                  <row>
                    <entry>Brokerage or Bank</entry>
                    <entry></entry>
                    <entry></entry>
                    <entry>Debit</entry>
                   <entry></entry>
                  </row>
                  <row>
                    <entry>Security</entry>
                    <entry>&minus;NumSold</entry>
                    <entry>SaleUnitPrice</entry>
                    <entry></entry>
                    <entry>SaleValue</entry>
                  </row>
                </tbody>
              </tgroup>
            </table>

            <table>
              <title>Transaction 2 capital gain/loss (loss in this example)
              </title>
              <tgroup cols="5">
                <tbody>
                  <row>
                    <entry><emphasis>Account</emphasis></entry>
                    <entry><emphasis>Tot Shares</emphasis></entry>
                    <entry><emphasis>(Unit) Price</emphasis></entry>
                    <entry><emphasis>Buy (Debit)</emphasis></entry>
                    <entry><emphasis>Sell (Credit)</emphasis></entry>
                  </row>
                  <row>
                      <entry>Capital Loss</entry>
                      <entry></entry>
                      <entry></entry>
                      <entry>Debit</entry>
                      <entry></entry>
                  </row>
                  <row>
                      <entry>Security</entry>
                      <entry>0</entry>
                      <entry>0</entry>
                      <entry></entry>
                      <entry>Credit</entry>
                  </row>
                </tbody>
              </tgroup>
            </table>
          </listitem>

          <listitem>
            <para>The automatic capital gains calculations can handle
              straightforward buy, sell, and return of capital transactions but
              any transaction that affect the number of shares, even simple
              splits, will cause it to produce wrong answers so those cases must
              be handled manually.
            </para>
          </listitem>
        </orderedlist>
      </sect3>

      <sect3 id="invest-sellManualExample">
        <title>Example 1: Manual Lot Creation and Linking</title>

        <para>Here is an example of selling part of a security holding using
          the LIFO method. In this example, the most recent buy transaction
          (dated 01/07/2016, a reinvested dividend), is linked to a lot, along
          with the sell transaction, and the &app;
          scrub function is used to calculate capital gain or loss and create
          the capital gain/loss transaction.
        </para>

        <orderedlist>
          <listitem><para>Open the security account's register.</para>
            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Security register before
                scrubbing a single lot
              </title>
              <screenshot id="invest-lots0reg">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/investLots0_RegB4Scrub.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/investLots0_RegB4Scrub.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of security register before lot scrubbing
                    </phrase>
                  </textobject>

                  <caption><para>An image of the Security Account register in
                    transaction journal view, before lot scrubbing.</para>
                  </caption>
                </mediaobject>
              </screenshot>
            </figure>
          </listitem>

          <listitem><para>Ensure all previous capital gain/loss transactions
            are separate transactions to the sell transactions which record the
            reduction in the number of shares and the value received.</para>

          </listitem>

          <listitem>
            <para>Select
            <menuchoice>
              <guimenu>Actions</guimenu>
              <guimenuitem>View Lots</guimenuitem>
            </menuchoice> to open the <guilabel>Lots in Account SSSS</guilabel>
            window where SSSS is the security account.
            </para>

            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Lots before scrubbing a
                single lot
              </title>
              <screenshot id="invest-lots1B4CreateLot">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/investLots1_BeforeCreateLot.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/investLots1_BeforeCreateLot.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of Lots in Account window before lot
                      scrubbing
                    </phrase>
                  </textobject>

                  <caption><para>An image of the <emphasis>Lots in Account
                    </emphasis> window before lot scrubbing.</para></caption>
                </mediaobject>
              </screenshot>
            </figure>
          </listitem>

          <listitem>
            <para>Create a new lot using the <guimenu>New Lot</guimenu> button.
            Initially this lot is not linked to any buy or sell split.</para>
          </listitem>

          <listitem><para>Highlight the new lot in the <guilabel>Lots in This
            Account</guilabel> panel.</para>
          </listitem>

          <listitem>
            <para>Highlight the buy split (dated 01/07/2016) of the
              security to be sold in the <guilabel>Splits free</guilabel> panel.
            </para>
          </listitem>

          <listitem>
            <para>Click the <guilabel> >> </guilabel> button to link the buy
            split with the highlighted lot. The split moves from the <guilabel>
            Splits free</guilabel> panel to the <guilabel>Splits in Lot
            </guilabel> panel.</para>
          </listitem>

          <listitem><para>Repeat the previous 2 steps for any other buy splits
            that should be included in the lot (in this example, there is only
            1 buy split in the sale).</para>
          </listitem>

          <listitem>
            <para>Highlight the sell split in the <guilabel>Splits free
              </guilabel> panel.</para>
          </listitem>

          <listitem>
            <para>Click the <guilabel> >> </guilabel> button to link the sell
              split with the highlighted lot.</para>
          </listitem>

          <listitem>
            <para>Check the lot <guilabel>Balance</guilabel> is as expected.
              I.e. in this example the lot balance should be zero as the number
              of securities sold in the lot, is matched with the same number of
              security buys.
            </para>

            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Lots before scrubbing a
                single lot, after manual linking
              </title>
              <screenshot id="invest-lots2B4Scrub1Lot">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/investLots2_BeforeScrub1Lot.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/investLots2_BeforeScrub1Lot.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of Lots in Account window before scrubbing a
                      single lot
                    </phrase>
                  </textobject>

                  <caption><para>An image of the <emphasis>Lots in Account
                    </emphasis> window before scrubbing a single lot.</para>
                  </caption>
                </mediaobject>
              </screenshot>
            </figure>
          </listitem>

          <listitem>
            <para>Click the <guilabel>Scrub</guilabel> button (<emphasis>NOT
              </emphasis> the <guilabel>Scrub Account</guilabel> button).
            </para>

            <para>The <guilabel>Lots in Account</guilabel> window has not
              changed after using the <guilabel>Scrub</guilabel> button
              so no example screen image is supplied.
            </para>
          </listitem>

          <listitem>
            <para>Close the <guilabel>Lots in Account SSSS</guilabel> window and
              return to the security account register.
            </para>

            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Register after manual
                linking and scrubbing a single lot
              </title>
              <screenshot id="invest-lots2RegAftScrub1Lot">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/investLots2_RegAfterScrub1Lot.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/investLots2_RegAfterScrub1Lot.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of Register after scrubbing a
                      single lot
                    </phrase>
                  </textobject>

                  <caption><para>An image of the Register after scrubbing a
                    single lot.</para>
                  </caption>
                </mediaobject>
              </screenshot>
            </figure>
          </listitem>

          <listitem><para>Continue to
            <xref linkend="invest-sellChgCapGainsAcct" /></para>
          </listitem>
        </orderedlist>
      </sect3>

      <sect3 id="invest-sellAutoExample">
        <title>Example 2: Automatic Creation of Capital Gain Or Loss
          Transactions</title>

        <para>Create the capital gains transaction by following these steps:
        </para>

        <orderedlist>
          <listitem>
            <para>Open the security account's register.</para>
          </listitem>

          <listitem><para>Ensure any previous manually entered capital gain/loss
            transaction splits have been entered in separate transactions to the
            the sell transactions.</para>
          </listitem>

          <listitem><para>Select <menuchoice><guimenu>Actions</guimenu>
            <guimenuitem>View Lots</guimenuitem></menuchoice> to open the
            <guilabel>Lots in Account SSSS</guilabel> window where SSSS is the
            security account.</para>
          </listitem>

          <listitem><para>If using LIFO, use the above procedure
            <xref linkend="invest-sellManual" /> to create a lot for each sell
            transaction, link the lot with the sell transaction and each of
            the buy transactions that make up the sale.</para>
          </listitem>

          <listitem>
            <para>Click the <guilabel>Scrub Account</guilabel> button which:
            </para>

            <itemizedlist>
              <listitem>
                <para>Creates lots for any buy transactions that are not already
                  linked to a lot and links them to sell transactions splits
                  using the FIFO method. As a transaction split can only
                  be linked to 1 lot, if a sell transaction needs to be linked
                  to multiple lots, the sell transaction split is itself split
                  into multiple subsplits. In the case of multiple subsplits,
                  it is possible to have different splits from the same
                  transaction in both the <guilabel>Splits free</guilabel> and
                  <guilabel>Splits in lot</guilabel> panels.
                </para>
              </listitem>

              <listitem><para>Creates a separate transaction per lot for
                capital gain/loss.</para>
              </listitem>
            </itemizedlist>
          </listitem>

          <listitem><para>Continue to
            <xref linkend="invest-sellChgCapGainsAcct" /></para>
          </listitem>
        </orderedlist>
      </sect3>

      <sect3 id="invest-sellAutoExample2">
        <title>Example 3: Automatic Creation of Capital Gain Or Loss
            Transactions, 2 Sales at Once</title>

        <para>Here is an example of FIFO scrubbing without manual lot creation.
          In this example, the transactions for 2 sales are scrubbed at once
          but usually scrubbing would be performed after each sale. One reason
          for scrubbing 2 sales at once, could be because there were multiple
          sales on the same day.
        </para>

        <figure pgwide="1">
          <title>Selling Shares - Capital Gains - Register before Scrub Account
          </title>
          <screenshot id="invest2-lots0reg">
            <mediaobject>
              <imageobject role="html">
              <imagedata fileref="figures/invest2Lots0RegB4Scrub.png"
                format="PNG" srccredit="Chris Good" width="510px"></imagedata>
              </imageobject>
              <imageobject role="fo">
                <imagedata fileref="figures/invest2Lots0RegB4Scrub.png"
                           format="PNG" srccredit="Chris Good" ></imagedata>
              </imageobject>

              <textobject>
                <phrase>Example of security register before Scrub Account is used.
                </phrase>
              </textobject>

              <caption><para>An image of the Security Account register in
                transaction journal view, before Scrub Account is used.</para>
              </caption>
            </mediaobject>
          </screenshot>
        </figure>

        <orderedlist>
          <listitem>
            <para>Select <menuchoice>
              <guimenu>Actions</guimenu>
              <guimenuitem>View Lots</guimenuitem></menuchoice> to open the
              <guilabel>Lots in Account SSSS</guilabel> window where SSSS is the
              security account.
            </para>

            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Lots before Scrub Account
              </title>
              <screenshot id="invest2-lots1B4ScrubAcct">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/invest2Lots1B4Scrub.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/invest2Lots1B4Scrub.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of Lots in Account window before Scrub Account
                      is used.
                    </phrase>
                  </textobject>

                  <caption><para>An image of the <emphasis>Lots in Account
                    </emphasis> window before Scrub Account is used.</para>
                  </caption>
                </mediaobject>
              </screenshot>
            </figure>
          </listitem>

          <listitem>
            <para>Click the <guilabel>Scrub Account</guilabel> button.</para>

            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Lots after Scrub Account
              </title>
              <screenshot id="invest2-lots2AftScrubAcct">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/invest2Lots2LotsAftScrubAcct.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/invest2Lots2LotsAftScrubAcct.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of Lots in Account window after using Scrub
                      Account
                    </phrase>
                  </textobject>

                  <caption><para>An image of the <emphasis>Lots in Account
                    </emphasis> window after using Scrub Account.</para>
                  </caption>
                </mediaobject>
              </screenshot>
            </figure>

            <note>
              <para>After using the <guilabel>Scrub Account</guilabel> button
                only the last lot is shown, so the above image is after the
                <guilabel>Lots in Account</guilabel> window has been closed and
                reopened so all the lots show.
              </para>
            </note>
          </listitem>

          <listitem>
            <para>Close the <guilabel>Lots in Account SSSS</guilabel> window and
              return to the security account register.
            </para>

            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Register after Scrub
                Account
              </title>
              <screenshot id="invest2-lots3AftScrubAcct">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/invest2Lots3RegAftScrubAcct.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/invest2Lots3RegAftScrubAcct.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of security register after using Scrub
                      Account
                    </phrase>
                  </textobject>

                  <caption><para>An image of the <emphasis>security register
                    </emphasis> after using Scrub Account.</para>
                  </caption>
                </mediaobject>
              </screenshot>
            </figure>

            <note>
              <para>The security splits in the sell transactions have been split
                into subsplits, one subsplit per lot, and a capital gain
                transaction has been created for each security subsplit of each
                sell transaction.
              </para>
            </note>
          </listitem>

          <listitem>
            <para>Continue to <xref linkend="invest-sellChgCapGainsAcct" />
            </para>
          </listitem>
        </orderedlist>
      </sect3>

      <sect3 id="invest-sellFifoSplit">
        <title>Example 4: Automatic Creation of Capital Gain Or Loss
            Transactions - After a Simple Stock Split</title>
        <para>Here is an example of FIFO scrubbing without manual lot
          creation/linking, where the Stock Split Assistant has been used for a
          simple stock split. In this example, 100 shares of security XYZ were
          bought for $10.00 each, there was a simple 2 for 1 stock split for
          zero cost (so the holding was then 200 shares @ $5.00 each), then all
          200 shares were sold for $6.00 each.
        </para>

        <figure pgwide="1">
          <title>Selling Shares - Capital Gains - Register after Scrub Account
          </title>
          <screenshot id="investLotsSplitReg">
            <mediaobject>
              <imageobject role="html">
              <imagedata fileref="figures/investLotsSplitReg.png"
                format="PNG" srccredit="Chris Good" width="510px"></imagedata>
              </imageobject>
              <imageobject role="fo">
                <imagedata fileref="figures/investLotsSplitReg.png"
                           format="PNG" srccredit="Chris Good" ></imagedata>
              </imageobject>

              <textobject>
                <phrase>Example of security register after Scrub Account is
                  used.
                </phrase>
              </textobject>

              <caption><para>An image of the Security Account register in
                transaction journal view, after Scrub Account is used.</para>
              </caption>
            </mediaobject>
          </screenshot>
        </figure>

        <figure pgwide="1">
          <title>Selling Shares - Capital Gains - Lot 0 after Scrub Account
          </title>
          <screenshot id="investLotsSplitLot0">
            <mediaobject>
              <imageobject role="html">
              <imagedata fileref="figures/investLotsSplitLot0.png"
                format="PNG" srccredit="Chris Good" width="510px"></imagedata>
              </imageobject>
              <imageobject role="fo">
                <imagedata fileref="figures/investLotsSplitLot0.png"
                           format="PNG" srccredit="Chris Good" ></imagedata>
              </imageobject>

              <textobject>
                <phrase>Example of security register after Scrub Account is used.
                </phrase>
              </textobject>

              <caption><para>An image of the Security Account register in
                transaction journal view, after Scrub Account is used.</para>
              </caption>
            </mediaobject>
          </screenshot>
        </figure>

        <figure pgwide="1">
          <title>Selling Shares - Capital Gains - Lot 1 after Scrub Account
          </title>
          <screenshot id="investLotsSplitLot1">
            <mediaobject>
              <imageobject role="html">
              <imagedata fileref="figures/investLotsSplitLot1.png"
                format="PNG" srccredit="Chris Good" width="510px"></imagedata>
              </imageobject>
              <imageobject role="fo">
                <imagedata fileref="figures/investLotsSplitLot1.png"
                           format="PNG" srccredit="Chris Good" ></imagedata>
              </imageobject>

              <textobject>
                <phrase>Example of security register after Scrub Account is
                  used.
                </phrase>
              </textobject>

              <caption><para>An image of the Security Account register in
                transaction journal view, after Scrub Account is used.</para>
              </caption>
            </mediaobject>
          </screenshot>
        </figure>

        <para>The above screen shots show that scrubbing created:</para>

        <para>2 lots. A separate lot for each buy (it essentially treats the
          stock split as a buy of 100 for no cost)
        </para>

        <para>2 capital gain transactions (one for each lot) on the date of the
          sale:
        </para>

        <itemizedlist>
          <listitem><para>
            Lot 0: 1/7/2009 loss $400 (sale $600 &minus; cost $1000)</para>
          </listitem>
          <listitem><para>
            Lot 1: 1/7/2009 gain $600 (sale $600 &minus; cost $0)</para>
          </listitem>
        </itemizedlist>

        <para>Total gain $200 is correct. Whether the gain is a single long-term
          one or one each of long-term and short-term or whether there's even a
          distinction depends on the user's tax jurisdiction and the way the
          split is structured. If the user needs help figuring it out they
          should consult a professional.
        </para>

      </sect3>

      <sect3 id="invest-sellChgCapGainsAcctExample">
        <title>
            Example 5: Changing the Orphaned Gains-CCC to Gain/Loss Account
          </title>

        <orderedlist>
          <listitem>
            <para>Close the <guilabel>Lots in Account SSSS</guilabel> window if
              open and return to the security account register.
            </para>

            <figure pgwide="1">
              <title>Selling Shares - Capital Gains - Register after scrubbing a
                single lot
              </title>
              <screenshot id="invest-lots4AftScrub1LotReg">
                <mediaobject>
                  <imageobject role="html">
                  <imagedata fileref="figures/investLots2_RegAfterScrub1Lot.png"
                    format="PNG" srccredit="Chris Good" width="510px"></imagedata>
                  </imageobject>
                  <imageobject role="fo">
                    <imagedata fileref="figures/investLots2_RegAfterScrub1Lot.png"
                               format="PNG" srccredit="Chris Good" ></imagedata>
                  </imageobject>

                  <textobject>
                    <phrase>Example of security register after scrubbing a
                      single lot
                    </phrase>
                  </textobject>

                  <caption><para>An image of the <emphasis>security register
                    </emphasis> after scrubbing a single lot.</para>
                  </caption>
                </mediaobject>
              </screenshot>
            </figure>
          </listitem>

          <listitem>
            <para>Find each new <emphasis>Realized Gain/Loss</emphasis>
              transaction in the security account register (they will
              have the same date as the sell transactions). Edit the <emphasis>
              Orphaned Gains-CCC</emphasis> transaction split to re-assign the
              income account to a more meaningful income (or expense) gain or
              loss account (e.g. <emphasis>Income:Long Term Capital
              Gain:IBM</emphasis>).
            </para>

            <tip>
              <para>You may like to split the capital gain/loss into
                taxable and non taxable parts if that is in accord with your
                tax laws.
              </para>
            </tip>
          </listitem>
        </orderedlist>
      </sect3>
    </sect2>
  </sect1>

  <sect1 id="invest-dividends1">
    <title>Dividends</title>

    <para>Some companies or mutual funds pay periodic dividends to
    shareholders. Dividends are typically given in one of two ways, either
    they are automatically reinvested into the commodity or they are given as
    cash. Mutual funds are often setup to automatically reinvest the dividend,
    while common stock dividends usually pay cash.</para>

      <sect2 id="invest-dividendcash">
        <title>Dividends in Cash</title>

      <para>If the dividend is presented as cash, you should record the
      transaction in the asset account that received the money, as income
      from <emphasis>Income:Dividends</emphasis>. Additionally if you want to tie
      the cash dividend to a particular stock holding then add a dummy
      transaction split to the stock account with quantity 0 price 1 value 0.</para>

      <para>As an example consider the following; the dividends
      deposited as cash into the <emphasis>Broker</emphasis> Account with a tie
      to the stock account.</para>

      <screenshot id="invest-dividendcash1">
        <mediaobject>
          <imageobject role="html">
            <imagedata fileref="figures/invest_dividendcash.png"
                       format="PNG" srccredit="Daniel Dodson" width="510px"></imagedata>
          </imageobject>
          <imageobject role="fo">
            <imagedata fileref="figures/invest_dividendcash.png"
                       format="PNG" srccredit="Daniel Dodson" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>Example of cash dividend transactions</phrase>
          </textobject>

          <caption><para>An image of the <emphasis>Brokerage</emphasis> Account register after a series of cash
          dividends. </para></caption>
        </mediaobject>
      </screenshot>

    <note>
      <para>If you want to track dividends on a per-stock basis, you would
      need to create an <emphasis>Income:Dividends:STOCKSYMBOL</emphasis> account for each stock
      you own that pays dividends.</para>
    </note>

    </sect2>

    <sect2 id="invest-dividendreinvest">
      <title>Dividends Re-Invested</title>

      <para>If you receive the dividend in the form of an automatic
      reinvestment, the transaction for this should be handled within
      the stock or mutual fund account as income from <quote>Income:Dividend</quote> for the
      appropriate number of reinvested shares. This type of reinvest account is often referred
      to as a DRIP (Dividend Re-Investment Program).</para>

      <para>As an example consider the following purchase of NSTAR (NST) stock with the
      dividends reinvested into a DRIP Account. Mutual fund re-investments would be the same.
      </para>

      <para>Starting with the purchase of 100 shares on Jan. 3, 2005, all dividends will be
      reinvested and an account is created to track the dividend to the specific stock. &app;
      simplifies the entry by allowing calculations within the cells of the transaction. If the
      first dividend is $.29/share, enter $53.28 (purchase price + dividend) in the share <guilabel>Price</guilabel>
      cell and 100*.29 in the <guilabel>Buy</guilabel> cell. &app; will calculate for you the
      corresponding numer of <guilabel>Shares</guilabel></para>

      <screenshot id="invest-dividendreinvest1">
        <mediaobject>
          <imageobject role="html">
             <imagedata fileref="figures/invest_dividendreinvest1.png" format="PNG"
                        srccredit="Cristian Marchi" width="510px"></imagedata>
           </imageobject>
           <imageobject role="fo">
             <imagedata fileref="figures/invest_dividendreinvest1.png" format="PNG"
                        srccredit="Cristian Marchi"></imagedata>
           </imageobject>

          <textobject>
            <phrase>Example of dividend reinvestment transactions</phrase>
          </textobject>

          <caption><para>An image of the NST Stock Account register after a dividend
          reinvestment. </para></caption>
        </mediaobject>
      </screenshot>

    </sect2>

  </sect1>

  <sect1 id="invest-retofcap">
    <title>Return of Capital</title>

    <para>This refers to a transaction where an investment returns capital to
      the investor and doesn't have any accounting implications other than
      reducing the cost basis. The number of shares held is not changed.
    </para>

    <para>A Return of Capital transaction can be entered in the stock register
      by entering the stock split with
    </para>

    <informaltable>
      <tgroup cols="2">
        <tbody>
          <row>
            <entry>Shares</entry><entry>0</entry>
          </row>

          <row>
            <entry>Price</entry><entry>0</entry>
          </row>

          <row>
            <entry>Sell</entry><entry>Return of Capital value</entry>
          </row>

        </tbody>
      </tgroup>
    </informaltable>

    <para>The other side of the double entry would usually be a debit to the
      brokerage bank account.
    </para>

    <screenshot id="invest-ret-of-cap">
      <mediaobject>
        <imageobject role="html">
           <imagedata fileref="figures/invest_ret_of_cap.png" format="PNG"
                      srccredit="Chris Good" width="510px"></imagedata>
         </imageobject>
         <imageobject role="fo">
           <imagedata fileref="figures/invest_ret_of_cap.png" format="PNG"
                      srccredit="Chris Good"></imagedata>
         </imageobject>
         <textobject>
          <phrase>Example of return of capital transactions</phrase>
        </textobject>

        <caption><para>An image of the Stock Account register after a return
          of capital.</para></caption>
      </mediaobject>
    </screenshot>

  <note><para>It is not possible to use the Stock Split Assistant to do this
    type of transaction.</para>
  </note>

  <tip><para>If you accidentally entered a non-zero price in the stock split,
    &app; may have created an unwanted price database
    entry which could cause reports to be wrong. Check for and remove such an
    unwanted entry from the price database using <menuchoice><guimenu>Tools
    </guimenu><guimenuitem>Price Editor</guimenuitem></menuchoice>.</para>
  </tip>

  </sect1>

<!--  Stock Splits - Simple

-->

  <sect1 id="invest-splitsnmergers1">
    <title>Splits and Mergers</title>

    <para>Companies may split their stock for many reasons but the most common
    is that the price has risen higher than management thinks is a reasonable price for
    many investors. Some of these splits are simple exchanges (eg 2 for 1 or 3 for 2)
    and some are complex exchanges with cash distributions.  Splits may also result in
    fewer shares if the exchange rate is a reverse split (1 for 3 or .75 for 1).

    </para>

      <sect2 id="invest-simplesplit">
        <title>Simple Stock Split</title>

      <para>As an example, our holding of NST stock declared a 2 for 1 stock split effective
      June 6, 2005.  The process for entering this transaction is; select
      <menuchoice><guimenu>Actions</guimenu><guimenuitem>Stock Split</guimenuitem></menuchoice> to start
      the assistant.</para>

      <screenshot id="invest-split1">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_split1.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>An image of the stock split assistant at step 1. </phrase>
          </textobject>

          <caption><para>An image of the selection of the stock split assistant. </para></caption>
        </mediaobject>
      </screenshot>

      <para>The first screen is an Introduction, select <guibutton>Forward</guibutton> to
      display the selection of the account and stock for the split.  You will need to
      create an entry for each <emphasis>Account:Stock</emphasis> combination you hold.</para>

      <screenshot id="invest-split2">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_split2.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>An image of the stock split assistant at step 2 - Selection of Account/Stock.
            </phrase>
          </textobject>

          <caption><para>An image of the stock split assistant at step 2 - Selection of
           Account/Stock.</para></caption>
        </mediaobject>
      </screenshot>


      <para>Select the <emphasis>Assets:Investments:DRIPs:NST</emphasis> and click on
      <guibutton>Forward</guibutton>.</para>

      <para>The next screen presents 5 fields in the Stock Splits Details window:</para>

      <itemizedlist>
        <listitem>
          <para><guilabel>Date</guilabel> - Enter the date of the split.</para>
        </listitem>

        <listitem>
          <para><guilabel>Shares</guilabel> -  The number of shares increased (or decreased)
          in the transaction.</para>
          <para>In our example it is a 2 for 1 split so the number of additional shares
          is the number of shares currently in the register.</para>
        </listitem>

        <listitem>
          <para><guilabel>Description</guilabel> - The Description should give a brief
          explanation of the transaction.</para>
        </listitem>

        <listitem>
          <para><guilabel>New Price</guilabel> - If desired the new price of the stock,
          after the split, may be entered.</para>
        </listitem>

        <listitem>
          <para><guilabel>Currency</guilabel> - The currency of the transaction
          is required.  This should be the same as the stock purchase currency.</para>
        </listitem>

      </itemizedlist>

      <para>Click on the <guibutton>Forward</guibutton> button.</para>

      <screenshot id="invest-split3">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_split3.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>An image of the stock split assistant at step 3 - Split Details. </phrase>
          </textobject>

          <caption><para>An image of the stock split assistant at step 3 - Split Details. </para>
          </caption>
        </mediaobject>
      </screenshot>


      <para>The next screen will be skipped in this example as there was no
      <quote>Cash in Lieu</quote>.
      </para>

      <screenshot id="invest-split4">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_split4.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>An image of the stock split assistant at step 4 - Cash in Lieu. </phrase>
          </textobject>

          <caption><para>An image of the stock split assistant at step 4 - Cash in Lieu. </para>
          </caption>
        </mediaobject>
      </screenshot>

      <para>A final <guilabel>Finish</guilabel> screen will give a last option to;
       <guibutton>Cancel</guibutton>, <guibutton>Back</guibutton> to modify any data entered or
       <guibutton>Apply</guibutton> to complete the stock split with the data entered. </para>

      <screenshot id="invest-simplesplit1">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_simplesplit1.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>Example of simple stock split transaction in the stock&rsquo;s register</phrase>
          </textobject>

          <caption><para>An image of the <emphasis>Assets:Investments:DRIPs:NST</emphasis>
          register after a simple stock split transaction. </para></caption>
        </mediaobject>
      </screenshot>

    </sect2>

<!--  Moderately Complex Stock Merger

-->

      <sect2 id="invest-merger1">
        <title>Moderately Complex Stock Merger</title>

      <para>As an example, assume you held AT&amp;T stock during the Nov. 18, 2005 merger of SBC
      with AT&amp;T. For this example you will have purchased AT&amp;T on April 1, 2005, any
      dividends will have been paid in cash, therefore not entered into the AT&amp;T
      stock register. </para>

      <para> The conditions of the merger were .77942 share of SBC stock were exchanged for
      each share of AT&amp;T stock.  The merged company continued to use the symbol
      <quote>T</quote> from AT&amp;T.</para>

      <para>AT&amp;T paid a <quote>dividend</quote> of $1.20/share on the transaction date,
      however this will not appear in the stock account as it was a cash distribution.</para>

      <para>The process for entering this transaction is identical to the simple split until
      the <quote>Details</quote> screen.  You will need to create an split entry in each
      <emphasis>Investment Account:Stock</emphasis> account combination that has shares
      splitting.</para>

      <screenshot id="invest-merge2">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_merge2.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>An image of the stock split assistant at step 2. </phrase>
          </textobject>

          <caption><para>An image of the stock split assistant at step 2 - Selection of
           Account/Stock (<emphasis>Investment Account:T</emphasis>).</para></caption>
        </mediaobject>
      </screenshot>


      <para>Select the <emphasis>Assets:Investments:Brokerage Account:Stock:T</emphasis> and click on
      <guibutton>Forward</guibutton>.</para>

      <para>The next screen presents 5 fields in the Stock Splits Details window:</para>

      <itemizedlist>
        <listitem>
          <para><guilabel>Date</guilabel> - Enter the date of the split.  Here we&rsquo;ll enter
           November 18, 2005.</para>
        </listitem>

        <listitem>
          <para><guilabel>Shares</guilabel> -  The number of shares increased (or decreased)
          in the transaction.</para>
          <para>In our example it is a .77942 for 1 split so the number of shares will
          decrease from the number of shares currently in the register.  You may use &app;&rsquo;s
          ability to perform calculations on an entry form by entering data directly
          (E.g. <quote>(.77942*100)&minus;100</quote>) to calculate the decrease in shares
          from the split.</para>
        </listitem>

        <listitem>
          <para><guilabel>Description</guilabel> - The Description should give a brief
          explanation of the transaction.</para>
        </listitem>

        <listitem>
          <para><guilabel>New Price</guilabel> - If desired the new price of the stock,
          after the split, may be entered.</para>
        </listitem>

        <listitem>
          <para><guilabel>Currency</guilabel> - The currency of the transaction
          is required.  This should be the same as the stock purchase currency.</para>
        </listitem>

      </itemizedlist>

      <para>Click on the <guibutton>Forward</guibutton> button.</para>

      <screenshot id="invest-merge3">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_merge3.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>An image of the stock split assistant at step 3. </phrase>
          </textobject>

          <caption><para>An image of the stock split assistant at step 3 - Split Details. </para></caption>
        </mediaobject>
      </screenshot>

      <para>The next screen will be skipped in this example as there was no
      <quote>Cash in Lieu</quote>.
      </para>

      <para>A final <quote>Finish</quote> screen will give a last option to
      <guimenu>Back</guimenu> to modify any data entered or <guimenu>Apply</guimenu>
      to complete the stock split with the data entered. </para>

      <screenshot id="invest-stockmerge1">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/invest_stockmerge1.png"
                       format="PNG" srccredit="Dave Herman" ></imagedata>
          </imageobject>

          <textobject>
            <phrase>Example of moderate stock split transaction in the stock&rsquo;s register</phrase>
          </textobject>

          <caption><para>An image of the <emphasis>Investment Account:T</emphasis> register after a
           stock split transaction that decreases the shares. </para></caption>
        </mediaobject>
      </screenshot>

    </sect2>

  </sect1>


<!--  Working Location  !!!!!!!!!!!!
  <sect1 id="invest-todo1">
    <title>To-do</title>

    <para>These are the remaining documentation sections that originally
    appeared in the 1.8.4 documentation which require being written up.</para>

    <itemizedlist>



-->

<!--
      <listitem>
        <para>Recording Stock Splits and Mergers (How-To)</para>
      </listitem>
      <listitem>
        <para>Reconciling with the Brokerage Statement (How-To)</para>
      </listitem>

      <listitem>
        <para>Recording Employee Stock Plans (Discussion)</para>
      </listitem>

      <listitem>
        <para>Stock Options (How-To)</para>
      </listitem>

    </itemizedlist>
  </sect1>
-->
</chapter>
