A.19. How do I buy stock?

Assume that you buy 100 shares of IBM at $102 with a commission of $40. The total cost of the purchase is $10,240. Assume that the cash balance in this account is $20,000.

Novice approach

This activity is similar to that described in FAQ A.11, where you made the change using the Maintain holdings screen. You create a new holdings record for IBM in the appropriate account. You enter the cost, shares, price, etc.

You then must replace the $20,000 with $9,760, the new cash balance in the CASH symbol in this account.

Expert approach

Again, similar to FAQ A.11, you will use the Buy sell transaction screen to enter this data. You will create a transaction as follows:

Open/Close Amount to be added Symbol Comment
Open $10,240 IBM  
Close -10,240 CASH  

The balances in the holdings table will be calculated and updated automatically.


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