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- Chapter 14 - Security Types
-
-
- [[Screen not in online version of documentation.]]
-
- The Security Type Table, brought up from the Main Menu, shows
- security types, divided into sections by class. At the beginning of
- each section is a 'dummy' security type that identifies the class.
- Capital Gainz includes a Security Type File, with a number of pre-
- defined security types, that's copied into your program directory
- during installation. Usually, you will not need to make changes or
- additions to the security types provided. The values displayed are:
-
- o Type code.
-
- o Description.
-
- o Class, such as STOCK or STOCK FUND.
-
- o Whether a global security with this type will default to dividends
- or interest (Div,Int).
-
- o Whether or not dividend or interest distributions by a security of
- this type are taxable.
-
- o Where short term capital gains distributions (STCG) by a security
- of this type are reported on the tax forms.
-
- o Where long term capital gains distributions (LTCG) by a security of
- this type are reported on the tax forms.
-
- o Whether or not to group Sales of a security of this type on
- Schedule D.
-
- o Where return of Principal distributions by a security of this type
- are reported on the tax forms.
-
- At the bottom of the Security Type Table is a scrollable row of
- functions:
-
- o Ctrl-F1:Function List - popup a list of functions to choose from.
-
- o Ins:Add - add a security type.
-
- o ENTER:Change - change the highlighted security type.
-
- o Del:Delete - delete the highlighted security type.
-
- o Esc:Exit - exit from the table, returning to the Main Menu.
-
- o Ctrl-PgUp:Top - go to the first record.
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- Capital Gainz Users Manual 14-1
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- o Ctrl-PgDn:Bottom - go to the last record.
-
- o F3:Security Type Report - generate the Security Type Report.
-
- o F10:More - scroll the list of functions.
-
- Each of these functions is described below.
-
- 14.1 Add a Security Type
-
- [[Screen not in online version of documentation.]]
-
- The Security Type Form is brought up to add a security type when
- you hit the Ins key from the Security Type Table. The fields in the
- Security Type Form are:
-
- o (Required) The Type Code for the security type. This can be any 1-4
- character code, usually having some pneumonic link to the security
- type. This code must be unique over all security types.
-
- o (Required) The security type Description. Up to 25 characters of
- identifying text can be entered.
-
- o (Required) The Class of the security type. Entering a blank or
- invalid class causes the Security Type Class Lookup Table to pop
- up. This table is described below.
-
- ===>>> o (Required) Whether a security of this type has dividend
- (DIV) or interest (INT) Distributions.
-
-
- ===>>> o (Required) Whether dividend or interest distributions by a
- security of this type are taxable on Schedule B. Choices
- are:
-
-
- o OMIT - distributions are omitted from the tax forms. This is not
- the same as being non-taxable.
-
- o TAX - distributions are taxable, and added in with other
- dividends and interest on Schedule B. TAX and NOTAX are the
- normal tax treatments.
-
- o NOTAX - distributions are non-taxable, and added in with other
- dividends and interest on Schedule B before being subtracted back
- out as non-taxable. TAX and NOTAX are the normal tax treatments.
-
- o (Required) Where Short Term Capital Gains distributions by a
- security of this type are reported on the tax forms. Choices are:
-
- o OMIT - distributions are omitted from the tax forms.
-
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- 14-2 Capital Gainz Users Manual
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- o B SCH - distributions are added to the dividends on Schedule B.
- This is the normal tax treatment.
-
- o D<-B - distributions are added to the dividends on Schedule B,
- but then subtracted back out for inclusion on Schedule D.
-
- o (Required) Where Long Term Capital Gains distributions by a
- security of this type are reported on the tax forms. Choices are:
-
- o OMIT - distributions are omitted from the tax forms.
-
- o B SCH - distributions are added to the dividends on Schedule B.
-
- o D<-B - distributions are added to the dividends on Schedule B,
- but then subtracted back out for inclusion on Schedule D. This is
- the normal tax treatment.
-
- o (Required) Whether to group sales of a security or list them
- individually on Schedule D. Choices are:
-
- o OMIT - don't include sales on Schedule D.
-
- o EACH - each purchase sold during the year is shown on Schedule D.
- This is the normal tax treatment.
-
- o GROUP - all purchases for a given sale are lumped into short and
- long term groups, so only one or two entries are made on Schedule
- D for each sale. The listed purchase date will be VARIOUS. It
- shortens the tax forms if a sale closes a large number of
- purchases, but is neither approved or prohibited by the IRS. For
- details on grouping sales, see Chapter 21.
-
- o (Required) Where Return of Principal distributions by a security of
- this type are reported on the tax forms. Choices are:
-
- o OMIT - distributions are omitted from the tax forms.
-
- o B SCH - distributions are added to the dividends on Schedule B,
- but then subtracted back out. This is the normal tax treatment.
-
- o D SCH - distributions are listed as sales on Schedule D, with 0
- shares sold and purchase amount equal to selling amount.
-
- Function keys at the bottom of the screen are:
-
- o Form Accept - accept all entries, the same as hitting Enter on each
- field. This key is only displayed when changing records.
-
- o Form Reject - exit immediately, the same as hitting Esc to back out
- of the form. This key is only displayed when adding or changing
- records.
-
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- Capital Gainz Users Manual 14-3
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- When adding a record, the fields are initialized to the most
- common values.
-
- After completing the form, the security type record is added. You
- return to the Security Type Table, and the just added security type is
- highlighted.
-
- 14.1.1 Security Type Class Lookup
-
- [[Screen not in online version of documentation.]]
-
- The Security Type Class Lookup Table is brought up if you enter an
- invalid security type class. Security types are divided into the
- following classes:
-
- o STOCK - securities such as common or preferred stock.
-
- o STOCK FUND - stock-based mutual funds.
-
- o BOND - securities such as corporate or municipal bonds.
-
- o BOND FUNDS - bond-based mutual funds.
-
- o CASH - any security with a fixed value, such as money market mutual
- funds or bank certificates of deposit.
-
- o OTHER - any other type of security, such as a partnership.
-
- o OTHER FUND - any other type of mutual fund, usually with mixed
- stock and bond holdings, such as an allocation fund.
-
- These classes are used in the portfolio allocation report, and also to
- distinguish between mutual funds and other securities.
-
- Function keys at the bottom of the screen are:
-
- o Enter:Select - select the highlighted class, inserting it into the
- form's class field.
-
- o Esc:Exit - leave the table without selecting a class.
-
-
- 14.1.2 Example - Add a Security Type
-
- Say you create a security type:
-
-
-
-
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- 14-4 Capital Gainz Users Manual
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-
- Type Code :SHLT
- Description :Sector Fund - Health Care
- Class :Stock Fund
- Distributions :DIV
- Sched B Div/Int :TAX
- Short Term CG :B SCH
- Long Term CG :D<-B
- Sched D Sales :EACH
- Ret of Principal:B SCH
-
- o The security type record is created.
-
- o Securities defined with this type will pay taxable dividends. Short
- and long term capital gains distributions will be reported on
- Schedule B, with long term gains subtracted out for inclusion on
- Schedule D. Sales are not grouped.
-
-
- 14.2 Change a Security Type
-
- The Security Type Form is brought up to change the highlighted
- security type when you hit the ENTER key while viewing the Security
- Type Table. The Security Type Form, described earlier, is initialized
- to the current values of the security type to be changed.
-
- ===>>> After completing the form, the security type record is updated.
- If you changed the type code or dividend/interest setting, all the
- global security records defined as this type are also changed.
- Confirmation is required regardless of the Confirm Update global
- setting, since many records could be affected. You return to the
- Security Type Table, and the just changed security type is
- highlighted.
-
- 14.2.1 Example - Change a Security Type
-
- Using the previous example, say you change the Type Code to HLTH.
-
- o The security type record is changed.
-
- o Any global securities that use this type are updated to use the new
- Type.
-
-
- 14.3 Delete a Security Type
-
- The Security Type Form is brought up to delete the highlighted
- security type when you hit Del while viewing the Security Type Table.
- The Security Type Form, described earlier, is initialized to the
- values of the security type to be deleted.
-
- ===>>> The security type record is deleted. However, all global
- securities defined as this type are NOT deleted. Instead, the type
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- Capital Gainz Users Manual 14-5
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-
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- code field in the global security records is set to all spaces.
- Confirmation is required regardless of the Confirm Delete global
- setting, since many records could be affected. When you're finished
- with the Security Type Form, you return to the Security Type Table,
- and the security type after the one just deleted is highlighted.
-
- 14.3.1 Example - Delete a Security Type
-
- Using the previous example, say you delete HLTH.
-
- o The security type record is deleted.
-
- o Any global securities that use this type are updated to use a blank
- Type.
-
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- 14.4 Security Type Report
-
- The Security Type Report is described in Chapter 15.
-
- 14.5 Predefined Security Types
-
- A number of security types are included in the Security Type File
- shipped with Capital Gainz. Based on your preferences, you can use the
- general ones (like Mutual Fund), use the specific ones (like Small
- Company Stock Fund), change the existing ones, or add new ones. All
- predefined types with Tax Free in their names treat dividend or
- interest distributions as non-taxable on Schedule B.
-
- Stock Class:
-
- o Stock - any type of stock.
-
- o Small Company Stock - typically traded OTC or on the AMEX.
-
- o Large Company Stock - typically traded on the NYSE.
-
- o Foreign Stock - trades on a foreign exchange, or with ADRs.
-
- o Gold/Mining Stock - a gold or other precious mineral mining
- company.
-
- o Stock Index - a stock index, such as the S&P 500.
-
- Stock Fund Class:
-
- o Stock Fund - a mutual fund investing in any type of stocks.
-
- o Income Stock Fund - invests in income-oriented stocks.
-
- o Growth Stock Fund - invests in growth-oriented stocks.
-
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- 14-6 Capital Gainz Users Manual
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- o Large Company Stock Fund - invests in large company stocks.
-
- o Small Company Stock Fund - invests in small company stocks.
-
- o Foreign Stock Fund - invests in foreign company stocks.
-
- o Global Stock Fund - invests in both local and foreign company
- stocks.
-
- o Stock Index Fund - mirrors one of the stock indices, such as the
- S&P 500.
-
- o Gold/Mining Stock Fund - invests in gold or mining companies.
-
- o Sector Fund - specializes in an industry segment, such as health
- care.
-
- o Closed-End Stock Fund - usually trades like a stock on one of the
- exchanges.
-
- Bond Class:
-
- o Bond - any type of bond.
-
- o Long Term Bond - long term corporate bond (15 to 25 years).
-
- o Medium Term Bond - medium term corporate bond (5 to 15 years).
-
- o Short Term Bond - short term corporate bond (1 to 5 years).
-
- o Tax Free Municipal Bond - issued by a state agency, non-taxable.
-
- o Treasury Bill - 13, 26, or 52 week treasury obligation.
-
- o Treasury Note - 1 to 10 year treasury obligation.
-
- o Treasury Bond - 10 to 25 year treasury obligation.
-
- o Federal Agency Bond - issued by agencies such as the Federal
- National Mortgage Association (Fannie Mae).
-
- o Foreign Bond - a foreign corporation bond.
-
- o Convertible Bond - corporate bond conditionally convertible into
- stock.
-
- o Bond Index - a bond index, like the Shearson Lehman Aggregate Bond
- Index.
-
- Bond Fund Class:
-
- o Bond Fund - a mutual fund investing in any type of bonds.
-
- Capital Gainz Users Manual 14-7
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-
-
- o Long Term Bond Fund - invests in long term corporate bonds.
-
- o Medium Term Bond Fund - invests in medium term corporate bonds.
-
- o Short Term Bond Fund - invests in short term corporate bonds.
-
- o Tax Free Bond Fund - invests in non-taxable bonds, such as
- municipal bonds.
-
- o Tax Free Long Term Bond Fund - invests in long term non-taxable
- bonds.
-
- o Tax Free Medium Term Bond Fund - invests in medium term non-taxable
- bonds.
-
- o Tax Free Short Term Bond Fund - invests in short term non-taxable
- bonds.
-
- o Bond Index Fund - mirrors one of the bond indices, such as the
- Shearson Lehman Aggregate Bond Index.
-
- o Government Bond Fund - invests in Treasury Bonds, Bills, and Notes.
-
- o Federal Agency Bond Fund - invests in bonds issued by agencies such
- as the Federal National Mortgage Association (Fannie Mae).
-
- o Foreign Bond Fund - invests in corporate bonds from foreign
- countries.
-
- o Global Bond Fund - invests in local and foreign bonds.
-
- o High Yield Bond Fund - invests in lower-rated, or 'junk' bonds.
-
- o Closed-End Bond Fund - usually trades like a stock on one of the
- exchanges.
-
- o Convertible Bond Fund - invests in corporate bonds convertible into
- stock.
-
- o Unit Trust - bonds are typically held to maturity; no management
- fees.
-
- Cash Class (maintain constant price):
-
- o Money Market Fund - invests in short term money market instruments.
-
-
- o Tax Free Money Market Fund - invests in short term non-taxable
- money market instruments.
-
- o Certificate of Deposit - held for a specified period, pays a fixed
- interest rate.
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- 14-8 Capital Gainz Users Manual
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-
- o Cash Equivalent - cash, checking account, or savings account
- holdings.
-
- o Tax Free Cash Equivalent - non-taxable cash equivalents.
-
- Other Types:
-
- o Other - any other type of non-mutual fund security.
-
- o Tax Free Other - any other type of non-taxable non-mutual fund
- security.
-
- o Market Index - a mixed stock, bond, or other security type index.
-
- o Partnership - a general or limited partnership.
-
- Other Fund Types:
-
- o Mutual Fund - any other type of mutual fund.
-
- o Tax Free Mutual Fund - any other type of non-taxable mutual fund.
-
- o Portfolio Allocation Fund - splits investing among market
- segments.
-
- o Balanced Fund - a mutual fund investing in stocks and bonds.
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- Capital Gainz Users Manual 14-9
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