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$$$$$$$$$$$ $ $ $$$$$$$ $$$$$$ $ $$$$$$$ $$$$$$$ $ $ $ $ $ $ $ $ $ $ $ $ $$$$$$$ $$$$$$ $ $ $$$$$$$ $ $$$$$$$$$$$ $ $ $ $ $ $ $ $$$$$ $$$$$$$$$$$ $ $ $$$$$$$ $ $$$ $ $$$$$$$$ $ $$$$$$ $ $ $ $ $$ $ $$ $ $ $$$$$$$ $ $ $$ $ $$ $$$$$$$$$$$ $ $ $ $ $$$ $$ $$ $$ $$$$$$$$$$$$$$$$$$$$$ Capital Gainz Users Manual Version 3.0 by Dave Cohen "A portfolio manager that successfully balances the modest needs of the small investor with the complex requirements of the professional investment manager." [[Online version does not include example screens or reports. Also, some chapters are omitted due to space considerations.]] (C) Copyright 1991-92 by David Lee Cohen All rights Reserved. No part of this manual may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any form or by any means, without the prior written permission of David Lee Cohen. David Lee Cohen DBLinx P.O. Box 12545 RTP, NC 27709-2545 (919)-469-5196 CompuServe ID: 70431,132 Internet: davec@rock.concert.net April 11, 1992 ────────────────────────────────────────────────── Capital Gainz v3.0 and this manual are dedicated to my wife Lynn, who had to put up with me during development. She's also responsible for numerous hours of testing, proofreading, and artwork. Table of Contents Preface - The Story of Capital Gainz . . . . . . . . . . . . . . v Format of this Manual . . . . . . . . . . . . . . . . . . . . viii Chapter 1 - Introduction . . . . . . . . . . . . . . . . . . . . 1 1.1 What Does Capital Gainz Offer? . . . . . . . . . . . . . 1 1.2 What Capital Gainz Is Not . . . . . . . . . . . . . . . . 4 1.3 Getting Started . . . . . . . . . . . . . . . . . . . . . 4 1.4 System Requirements . . . . . . . . . . . . . . . . . . . 5 1.5 Performance . . . . . . . . . . . . . . . . . . . . . . . 7 1.6 Terminology . . . . . . . . . . . . . . . . . . . . . . . 7 1.7 Data Entry . . . . . . . . . . . . . . . . . . . . . . . 10 1.8 Who to Contact . . . . . . . . . . . . . . . . . . . . . 13 Part I: Getting to Know You . . . . . . . . . . . . . . . . . . . 15 Chapter 2 - System Overview . . . . . . . . . . . . . . . . . . . 15 2.1 System Functions . . . . . . . . . . . . . . . . . . . . 15 2.2 Progress Displays . . . . . . . . . . . . . . . . . . . . 16 2.3 Local (Activity) Files . . . . . . . . . . . . . . . . . 16 2.4 Global Files . . . . . . . . . . . . . . . . . . . . . . 20 2.5 Field Limits . . . . . . . . . . . . . . . . . . . . . . 25 2.6 Reports . . . . . . . . . . . . . . . . . . . . . . . . . 26 Chapter 3 - Installation . . . . . . . . . . . . . . . . . . . . 29 3.1 Installation Dialogue . . . . . . . . . . . . . . . . . . 29 3.2 Installation Process . . . . . . . . . . . . . . . . . . 31 3.3 Installation Failures . . . . . . . . . . . . . . . . . . 33 Chapter 4 - Quick Tour . . . . . . . . . . . . . . . . . . . . . 35 4.1 Picking Up The Pace . . . . . . . . . . . . . . . . . . . 44 4.2 Analysis . . . . . . . . . . . . . . . . . . . . . . . . 48 4.3 Finishing Up . . . . . . . . . . . . . . . . . . . . . . 49 Chapter 5 - Questions and Answers . . . . . . . . . . . . . . . . 51 Chapter 6 - Programs and Files . . . . . . . . . . . . . . . . . 61 6.1 Executable Files . . . . . . . . . . . . . . . . . . . . 61 6.2 Data Files . . . . . . . . . . . . . . . . . . . . . . . 62 6.3 Documentation Files . . . . . . . . . . . . . . . . . . . 64 Part II: The Program Details . . . . . . . . . . . . . . . . . . 65 Chapter 7 - Main Menu . . . . . . . . . . . . . . . . . . . . . . 65 Chapter 8 - Activity . . . . . . . . . . . . . . . . . . . . . . 67 8.1 Buy Shares . . . . . . . . . . . . . . . . . . . . . . . 68 Capital Gainz Users Manual i 8.2 Sell Shares . . . . . . . . . . . . . . . . . . . . . . . 75 8.3 Record Distribution . . . . . . . . . . . . . . . . . . . 95 Chapter 9 - Local Securities . . . . . . . . . . . . . . . . . . 101 9.1 Add a Local Security . . . . . . . . . . . . . . . . . . 102 9.2 Change a Local Security . . . . . . . . . . . . . . . . . 105 9.3 Delete a Local Security . . . . . . . . . . . . . . . . . 106 9.4 Portfolio Detail . . . . . . . . . . . . . . . . . . . . 106 9.5 Price History . . . . . . . . . . . . . . . . . . . . . . 106 9.6 Price Update . . . . . . . . . . . . . . . . . . . . . . 111 9.7 Mixed Detail Report . . . . . . . . . . . . . . . . . . . 113 9.8 Activity Summary . . . . . . . . . . . . . . . . . . . . 113 9.9 Split Shares . . . . . . . . . . . . . . . . . . . . . . 113 9.10 Portfolio Allocation . . . . . . . . . . . . . . . . . 115 9.11 Fixup a Local Security . . . . . . . . . . . . . . . . . 115 Chapter 10 - Log Maintenance . . . . . . . . . . . . . . . . . . 117 10.1 Open Shares Log . . . . . . . . . . . . . . . . . . . . 118 10.2 Closed Shares Log . . . . . . . . . . . . . . . . . . . 121 10.3 Distribution Log . . . . . . . . . . . . . . . . . . . . 125 Chapter 11 - Portfolios . . . . . . . . . . . . . . . . . . . . . 129 11.1 Make Current . . . . . . . . . . . . . . . . . . . . . . 130 11.2 Add a Portfolio . . . . . . . . . . . . . . . . . . . . 130 11.3 Change a Portfolio . . . . . . . . . . . . . . . . . . . 131 11.4 Delete a Portfolio . . . . . . . . . . . . . . . . . . . 131 11.5 Tax Report . . . . . . . . . . . . . . . . . . . . . . . 132 11.6 Portfolio Summary . . . . . . . . . . . . . . . . . . . 132 11.7 Portfolio Detail . . . . . . . . . . . . . . . . . . . . 132 11.8 Portfolio Allocation . . . . . . . . . . . . . . . . . . 132 11.9 Show Values . . . . . . . . . . . . . . . . . . . . . . 132 Chapter 12 - Global Securities . . . . . . . . . . . . . . . . . 133 12.1 Add a Global Security . . . . . . . . . . . . . . . . . 134 12.2 Change a Global Security . . . . . . . . . . . . . . . . 140 12.3 Delete a Global Security . . . . . . . . . . . . . . . . 141 12.4 Price History . . . . . . . . . . . . . . . . . . . . . 141 12.5 Price Update . . . . . . . . . . . . . . . . . . . . . . 141 12.6 Report . . . . . . . . . . . . . . . . . . . . . . . . . 141 Chapter 13 - Broker/Investment Companies . . . . . . . . . . . . 143 13.1 Add a Broker/Investment Company . . . . . . . . . . . . 143 13.2 Change a Broker/Investment Company . . . . . . . . . . . 144 13.3 Delete a Broker/Investment Company . . . . . . . . . . . 145 13.4 Report . . . . . . . . . . . . . . . . . . . . . . . . . 145 Chapter 14 - Reports . . . . . . . . . . . . . . . . . . . . . . 147 14.1 Select Device . . . . . . . . . . . . . . . . . . . . . 148 14.2 Reports For All Portfolios . . . . . . . . . . . . . . . 149 Capital Gainz Users Manual ii 14.3 Reports For Current/All Portfolios . . . . . . . . . . . 152 14.4 Reports For Current Portfolios . . . . . . . . . . . . . 157 Chapter 15 - User Settings . . . . . . . . . . . . . . . . . . . 167 15.1 Long Term Holding Period in Days . . . . . . . . . . . . 167 15.2 Price History Interval in Days . . . . . . . . . . . . . 168 15.3 Confirm Adds/Confirm Updates/Confirm Deletes . . . . . . 168 15.4 Reinvest Distributions . . . . . . . . . . . . . . . . . 168 15.5 Redistribute Proceeds . . . . . . . . . . . . . . . . . 169 15.6 Log Transactions (Inactive) . . . . . . . . . . . . . . 169 15.7 Include Commission in Basis for Gain/Loss% . . . . . . . 169 15.8 Use Short Sales . . . . . . . . . . . . . . . . . . . . 169 15.9 Backup Command . . . . . . . . . . . . . . . . . . . . . 169 15.10 File Viewer . . . . . . . . . . . . . . . . . . . . . . 170 15.11 Price File Read at Startup . . . . . . . . . . . . . . 171 15.12 Append Reports . . . . . . . . . . . . . . . . . . . . 171 15.13 Lines Per Page . . . . . . . . . . . . . . . . . . . . 172 15.14 Line Draw Chars . . . . . . . . . . . . . . . . . . . . 172 15.15 Form Accept and Form Reject Keys . . . . . . . . . . . 172 15.16 Set Colors . . . . . . . . . . . . . . . . . . . . . . 172 15.17 Pick Foreground and Background Colors . . . . . . . . . 174 Chapter 16 - View Documentation . . . . . . . . . . . . . . . . . 175 Chapter 17 - Utility Program . . . . . . . . . . . . . . . . . . 177 17.1 Backup . . . . . . . . . . . . . . . . . . . . . . . . . 177 17.2 Utility Menu . . . . . . . . . . . . . . . . . . . . . . 178 17.3 Upgrade to a New Revision . . . . . . . . . . . . . . . 178 17.4 Copy/Move Portfolios . . . . . . . . . . . . . . . . . . 179 17.5 Copy/Move Local Securities . . . . . . . . . . . . . . . 181 17.6 Import/Export . . . . . . . . . . . . . . . . . . . . . 183 17.7 Rebuild Price History . . . . . . . . . . . . . . . . . 186 17.8 Rebuild/Pack Data Files . . . . . . . . . . . . . . . . 186 17.9 Directory . . . . . . . . . . . . . . . . . . . . . . . 187 17.10 Exit . . . . . . . . . . . . . . . . . . . . . . . . . 187 Part III: A Potpourri of Investment Information . . . . . . . . . 189 Chapter 18 - Analysis . . . . . . . . . . . . . . . . . . . . . . 189 18.1 Discrepancies . . . . . . . . . . . . . . . . . . . . . 189 18.2 Open Shares Gain/Loss . . . . . . . . . . . . . . . . . 190 18.3 Closed Shares Gain/Loss . . . . . . . . . . . . . . . . 191 18.4 Average Price . . . . . . . . . . . . . . . . . . . . . 192 18.5 Current Yield . . . . . . . . . . . . . . . . . . . . . 193 18.6 Total Return . . . . . . . . . . . . . . . . . . . . . . 194 18.7 Your Performance . . . . . . . . . . . . . . . . . . . . 195 18.8 Total Return vs Your Performance . . . . . . . . . . . . 198 18.9 Price History . . . . . . . . . . . . . . . . . . . . . 200 18.10 Portfolio Allocation . . . . . . . . . . . . . . . . . 201 Capital Gainz Users Manual iii Chapter 19 - Detailed Information on Selling Methods . . . . . . 203 Chapter 20 - Investment Strategies for the Small Investor . . . . 205 Part IV: Advanced Program Details . . . . . . . . . . . . . . . . 207 Chapter 21 - Performance, Memory, and Disk Usage . . . . . . . . 207 21.1 Improving Performance . . . . . . . . . . . . . . . . . 207 21.2 Memory . . . . . . . . . . . . . . . . . . . . . . . . . 208 21.3 Conserving Disk Space . . . . . . . . . . . . . . . . . 211 Chapter 22 - File Formats . . . . . . . . . . . . . . . . . . . . 215 22.1 Data Files . . . . . . . . . . . . . . . . . . . . . . . 215 22.2 Other Files . . . . . . . . . . . . . . . . . . . . . . 218 Chapter 23 - Running in Different Environments . . . . . . . . . 219 23.1 DOS 5.0 . . . . . . . . . . . . . . . . . . . . . . . . 219 23.2 Windows . . . . . . . . . . . . . . . . . . . . . . . . 219 23.3 DESQview . . . . . . . . . . . . . . . . . . . . . . . . 220 23.4 4DOS . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Chapter 24 - Command Line Switches . . . . . . . . . . . . . . . 223 24.1 Screen Blanking . . . . . . . . . . . . . . . . . . . . 223 24.2 Sound . . . . . . . . . . . . . . . . . . . . . . . . . 223 24.3 Enhanced Keyboard . . . . . . . . . . . . . . . . . . . 223 Chapter 25 - Error Messages . . . . . . . . . . . . . . . . . . 225 25.1 Severity . . . . . . . . . . . . . . . . . . . . . . . . 225 25.2 Messages . . . . . . . . . . . . . . . . . . . . . . . . 226 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229 Capital Gainz Users Manual iv Preface - The Story of Capital Gainz After graduating from college and managing to land a good paying software engineering job, I naturally became interested in investing. I read books and magazines covering various aspects and strategies of investing. When the moment came to plunk down my cash, I was tripped up by that arch nemesis of small investors: the brokerage fee. Apparently, you couldn't make money in the investment game unless you already had plenty of it! Switching gears, I hit on the concept of Mutual Funds. Natural progression led me to the small investor's utopia: no-load mutual funds. Finally, it was time to take the plunge. I spent some time switching cash from fund to fund whenever the urge struck. It was the hey-day of the mid-80's bull market, and very difficult to make a mistake when investing in stock funds. Then came the crash of '87 and a period of wild market instability. Whereas 90% of the investment strategies were winners during the ride up, I couldn't find a strategy that adequately dealt with the new market instabilities. I was confused...and then I saw the light of dollar-cost averaging. Shortly afterward I stumbled onto Dividend Reinvestment Plans, which allowed purchases of company stock without paying brokerage commissions. Mutual Funds and Dividend Reinvestment Plans became the basis for my rigid 'x dollars every month' dollar-cost averaging routine. While formulating these investment strategies, I finally broke down and bought a personal computer for home. I thought it would be nice to manage my investments and track performance using my new purchase, a 7MHz Epson Equity II. The paper, pencil, and calculator era drew to a close as I designed a spreadsheet and accompanying formulas to manage and track my investments. Not long after that, I redesigned the spreadsheet to address the shortcomings of the initial version. Along the way, I made the standard mistakes in specifying cell ranges and screwing up calculations by not moving blocks of cells in just such a way that the maze of interdependencies would remain intact. There had to be a better way. A Turbo-Tax/Quicken software bundle I purchased came with a free investment tracking program called Stock!. I played with it a bit - a little slow, but it looked like it would solve my spreadsheet blues. Well, the more data I entered, the slower Stock! ran. I read articles in PC Week while waiting for the program to record sales of shares, the red hard disk light on my PC flashing madly. I even gave it a crack at work on my 20Mhz 386 machine. It ran somewhat faster, but it was still beyond my patience level. Capital Gainz Users Manual v I hunted around for shareware and freeware, and only really found one package that came close to meeting my needs. After experimenting a bit, I decided it was time to look at commercial packages. Since Managing Your Money was the top selling investment program for PCs, I borrowed the manual from a friend to give it a look-see. Well, by this time I had become pretty stubborn and wanted a package that would meet my every need. MYM missed on several counts, most noticeably that it simply swept distributions off into the checking account module, without factoring them into performance. The ugly truth was out: not only did it take money to make money in the investing game, but the software to manage investments was geared to the large investor buying and selling blocks of stock. What about the small investor sticking to a regimen of dollar-cost averaging? What about the conservative investor who enrolled in dividend reinvestment plans to capture both income and share appreciation opportunities? As far as I could tell, they were left out in the cold. It looked like if I really wanted satisfaction, I had to do it myself. After carefully scrutinizing the various application development packages, I chose Clarion Professional Developer for both functional and monetary reasons. I also bought a 386 machine to join my outdated PC XT compatible at home. Several months and many late evening, early morning, and weekend sessions later, Capital Gainz was born. Maybe you've hit many of the same potholes that I have. In fact, you could very well have found new ones. Or, maybe you're just starting out in the quest to link your investments to the power of your personal computer. In any case, I hope Capital Gainz satisfies your investment tracking needs. I welcome all suggestions and comments on the program, and if it generates enough response I'd like to expand its functionality to include graphic charts, advanced calculations like yield to maturity for bonds and average annual return for securities, support for partnerships, tie-ins to checking account managers, ... So let me know how you feel. And register if you like it. I'd feel awfully bad about adding all the help, documentation, error checking, logging, and miscellaneous features if no one but me uses Capital Gainz. Plus, I really want to add more neat stuff, and I bet that you have a specific need that is currently absent from Capital Gainz, but would really help with your investment endeavors. Let me know. Sincerely, Dave Cohen December, 1990 Capital Gainz Users Manual vi Update Capital Gainz has steadily generated more and more interest. The most significant reasons behind this are: o Word-of-mouth recommendations. o A top 'trophy' rating by Public Brand Software, a leading shareware disk vendor. o The fine efforts of Software Excitement!, another major shareware disk vendor. o The Association of Shareware Professionals (ASP) designation. o The ASP Team Mailing, run by Nelson Ford of the Public (software) Library. This allowed Capital Gainz to go out to hundreds of vendors and BBS at minimal distribution costs. o An excellent newspaper review by Noah Matthews of Knight-Ridder, carried in the San Jose Mercury News, The Baltimore Sun, and the Austin American Statesman. The growing popularity spurred me on in creating Capital Gainz version 3.0. This version contains significant enhancements, allowing Capital Gainz to cover the spectrum from small investors to large investors, including professional investment managers. I'd like to thank all of the registered users, many of whom offered encouragement and suggestions. I'd like to list all the names here, but this manual has already grown well over 300 pages. The bulk of recent additions to Capital Gainz are directly attributable to their feedback. Keep 'em coming, and I'll do my best to keep up! Finally, a special thanks to the following version 3.0 pre-release testers who provided input and a much needed sanity check: Gary Bezanson, Alfredo Camacho, Adolf Fullgrabe, Jim Tambs, and David Woodward. Sincerely, Dave Cohen January, 1992 Capital Gainz Users Manual vii Format of this Manual This manual is divided into four parts, and contains the following information: Preface discusses the birth of Capital Gainz. Chapter 1 - Introduction discusses what Capital Gainz does, how to get started, where to find help, system requirements, and terminology used. Part I - Getting to Know You Chapter 2 - System Overview provides an overview of Capital Gainz' functions. Chapter 3 - Installation discusses the installation process. Chapter 4 - Quick Tour provides a whirlwind tour of Capital Gainz, walking you through the core operations with examples of purchases, sales, and distributions. Chapter 5 - Questions and Answers elaborates on some of the more confusing aspects of Capital Gainz. This chapter is presented in question and answer format, using the most frequently asked user questions as well as some anticipated questions. Chapter 6 - Files describes the function of all program, text, and data files distributed and created by Capital Gainz. Part II - The Program Details Chapter 7 - Main Menu through Chapter 16 - View Documentation provides detailed information on Capital Gainz forms and reports. Chapter 17 - Utility Program describes the Capital Gainz Utility Program. Part III - A Potpourri of Investment Information Chapter 18 - Analysis reviews the investment analysis features of Capital Gainz. Calculations employed by Capital Gainz are described here. Chapter 19 - Detailed Information on Selling Methods gives detailed information on the different selling methods offered by Capital Gainz, including tax-related considerations. Capital Gainz Users Manual viii Chapter 20 - Investment Strategies for the Small Investor briefly discusses small investor's strategies, including dollar-cost averaging and Dividend Reinvestment Programs. Part IV - Advanced Program Details Chapter 21 - Performance and Disk Usage discusses ways to tweak Capital Gainz for better performance, and how to reduce disk space usage. Chapter 22 - File Formats shows the internal file formats of the Capital Gainz data files. Chapter 23 - Running in Different Environments discusses using Capital Gainz with DOS 5.0, Windows, and DESQview. Chapter 24 - Command Line Switches lists the command line switches to modify Capital Gainz. Chapter 25 - Error Messages explains the error messages used in Capital Gainz, and how to report errors to us. Capital Gainz Users Manual ix Chapter 1 - Introduction Capital Gainz is an investment portfolio manager that successfully balances the modest needs of the small investor with the complex requirements of the professional investment manager. o The professional investment manager needs to keep track of portfolio information for multiple clients. Individual securities are globally defined, and available to multiple portfolios from a single pool. A wide range of reports, with flexible options, lets you keep clients up to date. In particular, detail and summary information is available for selected date ranges. Schedule B and Schedule D information is accessible in the format required by those tax forms. o The individual investor needs quick, no-hassle access to investment information. Price histories of securities are automatically built as you record activity. You can easily access performance information in summary form. Other needs arise with the popularity of 'dollar-cost averaging' strategies with mutual funds and dividend reinvestment plans. Specifically, the automated methods of selling a number of shares via a particular method, such as First- In/First-Out, are immensely useful. 1.1 What Does Capital Gainz Offer? Capital Gainz has many features that appeal to the needs of each type of user: 1) You record purchases, sales, and distributions with easy to understand forms, and select records to change from a scrolling table. Capital Gainz' input forms are easy to understand. They are not cluttered with useless information. Also, you can choose a record to change or delete by 'pointing' to it in a scrolling table. You're not forced to enter record numbers or dates. The same form used for input is used to change the record. 2) You can easily record the sale of a number of different purchases that occurred over a period. Most programs only allow you to select specific open shares to sell. Selling two years worth of mutual fund shares, assuming monthly purchases and yearly dividend and capital gains distributions, becomes a tedious exercise requiring you to specify 26 different selling actions. Other packages are a little bit better, but still force you to explicitly 'group' the purchases together. Capital Gainz Users Manual 1 With Capital Gainz, you can specify a number of shares to sell and a selling method such as first-in/first-out, and the appropriate open shares are automatically retrieved and displayed for confirmation of the sale. Thus, in the earlier example where you wanted to sell two years worth of accumulated shares, Capital Gainz requires you to enter only a single sell transaction. Of course, Capital Gainz also provides a way to specify individual shares to sell, but again only a single logical transaction is required. To sell specific shares, you select the shares to sell from a table, and then tell Capital Gainz to close the selected shares. 3) You can access a variety of selling methods. The IRS gives you many options when disposing of investments. So why do most programs limit you to only one or two? Capital Gainz allows you to sell shares by specific identification, first-in/first-out, last-in/first-out, maximize gains/minimize losses, minimize gains/maximize losses, and average price. All methods use a single, logical transaction. The methods employing maximization/minimization of gains are particularly powerful. You can see the effect of maximizing profits, post the sell order to the broker or investment company responsible, and then commit the sale after receiving share price confirmation. 4) You can calculate a security's total return. Most programs can show the progress of a security's price, but fail to add back dividends and capital gains distributions to get a true total return figure. After you specify a date range, Capital Gainz finds the earliest price, latest price, and cumulative reinvested distributions within that date range to calculate a true total return figure. This feature is a boon to the investor who seeks both dividends and price appreciation, since these two values are useless when viewed individually. Now this income oriented investor can easily determine if Stock X's appreciation over the last year adequately made up the difference between its 4.5% yield and the current 7% average money fund yield. 5) You can compare a security's total return to your actual realized performance. Capital Gainz combines your current holdings, sales, and distributions of each security to arrive at your actual realized performance. Does your 'dollar-cost' strategy beat the 'buy-and-hold' strategy reflected by the total return figure? Capital Gainz will let you know. 6) You can specify a range of flexible reporting options. Capital Gainz gives you several levels of detail and summary reports, and the ability to restrict the information to a specific date range. Plus, a variety of other reports, such as portfolio allocation, help you stay on top of your portfolio. Dollar-cost averagers can breathe a sigh of relief with Capital Gainz' tax form Schedule B and D reports. You can send reports to a printer, a DOS file, or the screen. Capital Gainz Users Manual 2 7) You can perform powerful 'what-if?' scenarios. After specifying how many shares to sell and the selling method to use, or selecting the specific shares using the identification method, Capital Gainz displays a table of all affected open shares with the associated gain or loss. You are then given the choice of confirming or backing out of the sale. Confirmation results in recording the affected open shares as sold, while choosing not to confirm the sale leaves all files in the same state as before entering the selling information. Most programs do not provide a 'what if?' mechanism to see what the outcome of a sale would be. You must get out the calculator, pencil, and paper to determine if the sale should be made. However, Capital Gainz automatically shows you what shares to sell to attain maximum profit, or maximum loss, without actually performing the sale. 8) You can easily maintain securities' price histories. Every buy and sell transaction potentially adds an entry to the price history, without any additional action required on your part. You can also manually add entries, change entries, and delete entries. To even out the date/price entries added, you specify the number of days between entries. The price history information presented flags the high and low prices, and gives you a simple average price. In addition, distributions are noted so you can easily tell when a price dip is attributable to a dividend payout. Stock splits are also recorded in the price history. 9) You can separate out commissions, and determine how you want to factor them into the basis cost. Capital Gainz has a separate entry for commissions when you buy and sell shares. Commissions are always factored in the gain/loss calculation, but you can choose to include or not include them in the actual basis, affecting the calculated percentage gain/loss. You also can print out commissions paid, broken down by broker. 10) You can maintain separate portfolios. Capital Gainz lets you maintain up to 999 different portfolios. All portfolio-specific screens and reports show the associated portfolio. Additional utilities let you copy or move security holdings between portfolios. 11) You can keep a pool of defined securities for populating portfolios. Capital Gainz separates securities into 'local' and 'global' entities. Global securities embody a symbol, a name, a type, and a number of dividend payouts per year. These define different stocks, bonds, or mutual funds. Local securities are specific instances of global securities. Portfolios actually consist of local securities and their associated open shares. The local securities are linked to the global securities, which in turn each have price histories. So, when you want to add an already defined security to another portfolio, use the global information you've already Capital Gainz Users Manual 3 specified. 12) You can associate brokers and investment companies with securities. Capital Gainz lets you identify brokers or investment companies for global and local securities. Thus, while a mutual fund company may be associated with a global security (mutual fund), you can define a broker that handles a particular local security. 1.2 What Capital Gainz Is Not Capital Gainz is currently a single user application. If there is sufficient demand, it could be enhanced to include multi-user requirements such as record-locking. The development platform used contains support for both multi-user systems and LANs, so support for multiple simultaneous users is only a matter of adding the appropriate protection and restructuring several areas to avoid contention. Capital Gainz does not yet support stock options. Also, there are no special calculations for bonds, such as yield-to-maturity. Capital Gainz does not offer graphing or charting capabilities - yet. However, with the Utility Program, you can export data into other programs, such as spreadsheets, to generate charts and graphs. 1.3 Getting Started If you just can't wait to try out Capital Gainz, at least make sure you've skimmed the README.DOC file for any last minute considerations. You may want to follow the Quick Tour in Chapter 4. Also, be sure to refer to the LICENSE.DOC file for usage and distribution guidelines. After installation, Capital Gainz can be started with the CG.BAT file by typing CG Capital Gainz data files (*.DAT and *.K01) and help files (*.HLP) must be located in the directory that you're in when you start Capital Gainz. You can use the DOS search path to locate the Capital Gainz executable file. Personally, I never read documentation before trying a program. If the program is easy enough to use without it, then I may refer to it in the future for more advanced features. I hope Capital Gainz is easy enough to use without painful reading of this long document. Capital Gainz Users Manual 4 1.3.1 Getting Help Online help is only a function key away in Capital Gainz. The F1 function key brings up the help screen most suitable for the current table or form, but you also can view help on any topic from any help screen. Online help is available for the following topics: [[Screen not in online version.]] If you chose to install the online documentation, this users manual can be used for reference via the View Documentation function on the Main Menu. While viewing the manual with this option, you can quickly and easily jump to specific pages listed in the Table of Contents or the Index. 1.4 System Requirements 1.4.1 Processor Capital Gainz requires an Intel 8086, 80286, 80386, or 80486 based personal computer, or a close compatible like Epson's NEC chip systems. Capital Gainz performs well on 8086 based computers, but you may prefer 80286 or 80386 systems. (In fact, initial development of Capital Gainz was done on a 7Mhz Epson 8086 compatible PC.) 1.4.2 Operating System Capital Gainz will run on MS-DOS or PC-DOS version 3.00 or later. Isolated problems have been reported with versions of DOS prior to version 3.00. This is because of the way older versions of DOS handled overlays. See Chapter 23 for information on running Capital Gainz under other environments, such MS Windows 3.0, DESQview, and 4DOS. 1.4.3 Memory To coexist with a normal set of TSRs, 512KB is a safe minimum amount of free RAM. This generally requires you to have 640KB of installed memory as some amount of memory is consumed by DOS, file buffers, drivers, and TSRs. Although the size of the Capital Gainz executable file CAPGNZ.EXE exceeds 512KB, extensive use of overlays reduces actual runtime RAM requirements. Capital Gainz Users Manual 5 1.4.4 Disk Space Although it's possible to run Capital Gainz on a high-density floppy disk, a hard disk is strongly recommended. With some of the more disk-intensive operations, such as closing many open shares, performance depends heavily on disk access speeds. The Capital Gainz executable file is about 700KB. After adding documentation and utility files, reserve about 1.5MB of space for the full release, in addition to the space required for your data. Chapter 22 lists the disk space used by data files and their associated key files. If you need to free up disk space, see Chapter 21. Deleting the non-essential files mentioned in that chapter gives back about 750KB of disk space. Unless you're a very active investor, 200KB of disk space will hold about 3-4 years of data. Thus, 1MB (no utilities or documentation) to 1.7MB (full release) of disk space can handle Capital Gainz and your investment data for a considerable period. 1.4.5 Monitor Capital Gainz will work with any monochrome or CGA/EGA/VGA monitor that can display the IBM extended ASCII character set, which includes the special line drawing characters. No special graphics boards are required. If some of your screens are difficult to read and you have a color monitor (VGA, EGA, or CGA), try changing the color settings in the User Settings Form. If you don't have a color monitor and have difficulty seeing the screens or highlight bar, enter the following command prior to starting Capital Gainz: MODE BW80 or MODE MONO Capital Gainz was probably getting incorrect information returned about the type of monitor you had, and this command sets your monitor to emulate a monochrome screen. If this fixes your problems, you may want to use a text editor to add this command to CG.BAT. 1.4.6 Printer Capital Gainz does not require a printer, as you can either send reports to the screen or to ASCII files. A printer is recommended, though. Before printing reports, see if your printer can print the IBM extended ASCII character set. You may need to consult your printer's manual for information on setting the printer's DIP switches for Capital Gainz Users Manual 6 printing graphics. If your printer does not support these line drawing characters, make sure you set the Line Draw Chars value to 'N' in the User Settings File. This will avoid printing a lot of strange characters or blank lines instead of the separator lines. Capital Gainz always prints to 'PRN', which goes to the first printer port. If your printer is connected to a different port, you will need to send reports to ASCII files and print them after exiting from Capital Gainz. 1.4.7 System Clock Since Capital Gainz uses the system date for calculations involving the long term holding period, a battery powered internal system clock is recommended. If a clock is not installed, you should set the system time before running Capital Gainz. The best way to remember to do this is to add the DOS DATE command to your AUTOEXEC.BAT file, or to the CG.BAT file. 1.5 Performance Every effort was made to boost Capital Gainz performance without sacrificing reliability. File buffers and index caches are used at runtime, so the computer's hard disk is strangely quiet while performing some operations based on reading files, such as building activity logs. Chapter 21 includes an in depth discussion of ways to boost Capital Gainz' performance. 1.6 Terminology To avoid possible confusion, this section describes the main terminology employed by Capital Gainz.. 1.6.1 Investment Terms o Basis: 'basis', or 'basis amount', refers to the amount of a purchase. Likewise, 'basis price' refers to the purchase price. The term 'basis' is used to reflect the fact that the actual purchase amount, or price, is not necessarily the same amount, or price, used to determine gain/loss amounts. When using a category, or averaging method, the basis price and amount usually differ from the actual purchase price and amount. Commissions may or may not be subtracted from the purchase amount to arrive at the basis amount. Whether or not commissions are included in the basis can be set in the User Settings Form. Since the commission amount was not actually used to buy shares, the default is not to include commissions in the basis. Including commissions in the basis results in slightly lower gain and loss Capital Gainz Users Manual 7 percentages. The gain/loss amounts are the same whether or not commissions are included in the basis. Note that commissions are always included in the basis for the Schedule D Report, to reduce your taxes. According to the IRS guidelines, you add purchase and selling commissions to the open basis amount. See Chapter 18 for more information on calculations used by Capital Gainz. o Broker/Investment Company: Broker/Investment Company refers to the individual or company that should be contacted to buy or sell shares of a particular security. An address and phone number are associated with the person or company. Thus, a mutual fund security could be connected to an investment company, along with the company's address and 800 number. Likewise, a specific brokerage could be associated with a stock or mutual fund. o Category Method: a category method is one of the selling methods that uses share price averages - either single category average or double category average. o Closed Shares: closed shares are instances of a security that you purchased and subsequently sold. 'Closed' and 'sold' are synonymous. o Commissions: commissions are fees charged by broker/investment companies to purchase or sell securities. The discussion about 'basis' describes how commissions are treated in the security costs. Commissions should include mutual fund front end and back end loads. o Distribution: a distribution is a monetary payout to holders of a security. For instance, bonds, mutual funds, and many stocks distribute dividends to shareholders. Capital gains distributions are usually only associated with mutual funds. o Distribution Type: a distribution type is a specific type of distribution, such as a dividend or short term capital gain distribution. o Distributions: distributions are dividends, short term capital gains, and long term capital gains. In addition, miscellaneous fees, such as IRA maintenance fees, are kept as distributions. The reasoning behind this is that the relative infrequency of such fees does not warrant separate logs, reports, or screen groups. o Fees: fees are IRA maintenance fees, low share balance fees, mutual Capital Gainz Users Manual 8 fund maintenance fees, or other fees that aren't associated with particular shares. Since they can't be associated with particular shares, fees are not used in most gain/loss calculations. If you don't want to include commissions in the gain loss calculations, then you can use the FEE distribution type for them. Fees are managed along with distributions. o Global Security: a global security defines a particular stock, bond, or mutual fund. A global security has associated price information, but no actual shares. Local securities are linked to global securities, and have associated holdings of the global security. Thus, Fidelity Magellan is a global security, with a price history, but several portfolios may contain Fidelity Magellan holdings in local securities linked to the global security. (See Local Security.) o Load: mutual funds often charge front end loads on purchases, and/or back end loads on sales. These charges should be treated as commissions. o Local Security: a local security is a specific instance of a global security. A given local security is located in a single portfolio and has associated shares. Thus, while Fidelity Magellan is defined as a global security, you can hold shares of Fidelity Magellan in more than one portfolio. (See Global Security.) o Log: the activity logs refer to the Open Shares, Closed Shares, and Distribution File records. o Open Shares: Open shares are instances of a security that you have purchased but not yet sold. 'Open' and 'Buy' are often used interchangeably when referring to open shares. o Portfolio: A portfolio contains some number of securities and associated open or closed shares. Essentially, portfolios group related holdings together. o Price History: Price History refers to a log of date/price, date/distribution, and date/split combinations, useful for investment analysis. o Return of Principal: Return of principal refers to non-taxable distributions of invested capital. This is usually associated with unit trusts or partnerships. o Security: A security refers to a particular company's stock or bonds, or to a particular mutual fund offered by an investment company. Thus, both IBM stock and the Fidelity Magellan mutual fund are examples of securities. Capital Gainz Users Manual 9 o Security Type: A specific type or class of security, such as Bond Mutual Fund or Large Company Stock. o Selling Method: a strategy for selling shares, such as First- In/First-Out or Maximum Gain/Minimum Loss. o Total Return: a figure often used by mutual funds to show the performance of a fund over time. Total return mirrors a 'buy-and- hold' strategy, with reinvested distributions. 1.7 Data Entry 1.7.1 Screen Terms o Forms: Forms refer to screens that require you to enter information. o Tables: Tables refer to lists of associated records. Sometimes you must define the association through a data entry field at the top of the table. There are several variations of Tables - without any qualifying adjectives, a Table refers to a list of associated records that allows some combination of Add/Change/Delete/Select operations. o Choice Tables: Choice Tables are similar to ordinary Tables, except they only allow rows to be tagged/untagged. Add/Change/Delete operations are not supported. o Menus: Menus offer you a list of choices, and you make a selection by hitting the ENTER key after highlighting the desired choice, or by hitting the key associated with the desired choice. o Point To: 'Point to' refers to the cursor's positioning in relation to the fields on the screen. When you position the cursor on a field (or sometimes a set of fields), the field (or fields) is distinguished by reverse video attributes. o Fields: Fields are values that you enter. When a field is waiting for entry, it's highlighted. Fields often require entry, but may be optional. If a field is optional, you can leave it blank. Some required fields will pop up a Lookup Table if you enter a blank or invalid value. You highlight the desired choice in the table and hit ENTER. Other required fields may present a list of several options next to the cursor. For these fields, you can highlight your choice and hit ENTER, or just hit the initial character in the desired choice. Capital Gainz normally enables the NumLock key for numeric fields so you can use your numeric keypad for entry. Capital Gainz Users Manual 10 o Reports: Reports contain information about data stored in Capital Gainz. You can send reports to the screen, to a file, or to the printer. 1.7.2 Command Keys and Key Combinations Command keys are all keys that have special meaning. These include: ENTER, CTRL-ENTER, ESC, CTRL-ESC, PGUP, CTRL-PGUP, PGDN, CTRL-PGDN, the arrow keys, and the function keys. CTRL-ENTER means to hold down the Control key while hitting the ENTER key. The INS and DEL keys are usually found on the numeric keypad, and NumLock must be turned off to use them. You can use the ENTER key on the main keyboard or the numeric keypad. Forms accept the entry of values for one or more fields. Form Field Entry Section : ESC - go to previous field, quit form if on first field CTRL-END - erase field ENTER - accept field and go to next field, accept form if on last field UP ARROW - same as ESC DOWN ARROW - same as ENTER CTRL-ENTER - accept form (can be redefined) CTRL-ESC - reject form (can be redefined) Menus accept a choice which triggers an indicated action. Menu Section : ENTER - call routine for current item ESC - quit menu UP ARROW - cursor up one item DOWN ARROW - cursor down one item other keys - execute indicated function for key Tables show a repeated set of values. Tables also may accept the entry of one or more fields. Most tables allow you to call up a form to enter, add, or delete values. Choice Tables only allow you to tag one or more values. Capital Gainz Users Manual 11 Table Field Entry Section : same as Form Table Record List Section : ESC - quit table, or go to field entry section UP ARROW - point to previous record DOWN ARROW - point to next record PGDN - scroll table down PGUP - scroll table up CTRL-PGDN - point to last record CTRL-PGUP - point to first record INS - call form to add a record DEL - delete table entry at cursor ENTER - if you get to the table by entering an invalid entry in a Form, then ENTER selects the highlighted record for the Form. Otherwise, ENTER calls the form to change the highlighted record Special function keys and common key combinations are labeled at the bottom of all tables and forms. If all of the function keys won't fit on one line, there may be a MORE key to scroll through the available function keys. The F1 function key is always used for screen help. 1.7.3 Editing Field Entries When filling in forms, you can use the INS, DEL, CTRL-END, BACKSPACE, and arrow keys for editing fields. If a field is required, you can't go to the next field until you enter a valid value. If a field is not required, then you can leave it blank and hit ENTER. Except when offered a choice of values for a field, you must end an entry with the ENTER key. When offered a choice of values, you can enter the first character in your choice to automatically select it. Or, you can use the arrow keys to highlight your choice and then hit ENTER. For example, when given a choice of 'YES' or 'NO', you can simply hit the 'y' or 'n' key. Capital Gainz tries to 'guess' what you want to enter. For instance, it globally saves the last entered date field, and displays it in subsequent forms' date fields. Likewise, the last entered security symbol is filled in in subsequent symbol entry fields. Or, when selling shares, Capital Gainz fills in the number of shares value with the current number of open shares. As you can see, Capital Gainz relies heavily on default values to make your data entry experience pleasant. Of course, you can change the displayed defaults. Capital Gainz Users Manual 12 1.8 Who to Contact Capital Gainz is Copyrighted 1991-92 by David Lee Cohen. Any comments, bug reports, or suggestions are welcome: Dave Cohen DBLinx P.O. Box 12545 RTP, NC 27709-2545 (919)-469-5196 CompuServe ID: 70431,132 Internet: davec@rock.concert.net Refer to the README.DOC file for recent information not included in this manual. Refer to the LICENSE.DOC file for information regarding distribution and registration of Capital Gainz. Specific information for disk vendors is included in the VENDOR.DOC file. Capital Gainz Users Manual 13 Capital Gainz Users Manual 14 Part I: Getting to Know You Chapter 2 - System Overview This chapter shows the general flow of activity that you would normally follow when using Capital Gainz. To help you understand the flow, the available data files and reports are described. 2.1 System Functions The Map help screens give you a 'map' of the Capital Gainz functions. [[Screen not in online version.]] The Main Map corresponds to Capital Gainz' Main Menu. Functions followed by a '...' can be expanded by moving the cursor to the function and hitting ENTER. [[Screen not in online version.]] The Activity Map shows functions available from the Activity Menu. [[Screen not in online version.]] The Local Security Map shows functions available after choosing Security from the Main Menu. [[Screen not in online version.]] The Log Maintenance Map shows functions available from the Log Maintenance Menu. [[Screen not in online version.]] The Portfolio Map shows functions available after choosing Portfolio from the Main Menu. [[Screen not in online version.]] The Global Security Map shows functions available after choosing Global Security from the Main Menu. [[Screen not in online version.]] The Broker/Investment Company Map shows functions available after choosing Broker/Investment Company from the Main Menu. [[Screen not in online version.]] The Report Map shows functions available from the Report Menu. [[Screen not in online version.]] The View Documentation Map shows what documents can be viewed. 2.1.1 System Function Flow A typical user's path through Capital Gainz is illustrated in the System Flow help screen: [[Screen not in online version.]] Capital Gainz Users Manual 15 2.1.2 File Relationships The relationships between Capital Gainz data files are shown in the File Relationships help screen: [[Screen not in online version.]] 2.2 Progress Displays Capital Gainz displays messages at the bottom of the screen when it's busy with the following activities: o Creating, updating, or deleting multiple records. o Printing a report. o Building a table for display. o Processing multiple records, such as splitting shares. Sometimes, these messages flash rather quickly. Don't be alarmed. Any errors will be displayed and pause for user input. 2.3 Local (Activity) Files The Local Files help screen shows the composition of the activity data files used by Capital Gainz: [[Screen not in online version.]] 2.3.1 Local Security File A local security has open share information associated with it, and is linked to a global security. The global security defines the actual security-specific details, while the local security is an instance of the global security held in a portfolio. The reason for distinguishing between global and local securities is to reduce redundant data. The price history of a security is associated with the global security, and not with each instance of the local security. Global and local securities both have symbols associated with them, but the symbols can be the same. The global security symbol must be unique over all global securities, but the local security symbol must only be unique within a given portfolio. If you have two portfolios that both contain IBM stock, you can set the global symbol and both local symbols to 'IBM'. On the other hand, you may have one portfolio that holds IBM stock both within and outside an IRA plan. In this case, you can define the global symbol as 'IBM', and link two local security symbols, say IBMT (IBM taxable) and IBMTF (IBM tax- free) to it. Capital Gainz Users Manual 16 Local security information is shown in the Local Security Table, and inserted or changed with the Local Security Form. When you edit a local security with the Local Security Form, the associated global security's information is also displayed. The Local Security File maintains the following information: o Local Symbol: a 1-5 character id, unique within a portfolio. This can be the same or different from the global symbol. o Global Symbol: a 1-5 character id, unique over all portfolios. This can be the stock symbol used in the newspaper listings, or any other representative string. The local security is linked to this global security; the global security contains the security name and price history. o Broker/Investment Company: the name of the broker or investment company associated with the local security. You can enter up to 30 characters. This can be the same or different from the broker/investment company in the associated global security. o Account Number: the brokerage account number, mutual fund account number, or company dividend reinvestment plan number. You can enter up to 20 numbers or characters. This can be the same or different from the account number in the associated global security. o Tax Exempt Flag: this flag tells whether or not this local security is held in a tax-exempt retirement program. Local securities with this flag set are skipped when you generate the tax forms. o Sell Method: the most recent selling method used with this security is saved and used as the default the next time you sell shares. o Open Shares Information: the number of open shares, the open amount, and the open commission are maintained for two reasons. First, it allows this information to be displayed quickly on the Local Security Table without totalling the values of all open shares records. Second, it is necessary for a security that employs an averaging selling method, since maintaining average share price information in each open shares record would cause multiple writes every time you buy or sell shares, translating into extremely poor performance. o Short Term Open Share Information: the short term number of open shares, the short term open amount, and the short term open commissions. These values are only used for securities employing the double category selling method. o Precision: the price and share precision for this local security. You can specify between 2 and 4 decimal places. Capital Gainz Users Manual 17 2.3.2 Open Shares File Every time you record a purchase, an open shares record is created. Open shares records are associated with a local security, which is in turn associated with a global security. You can record multiple purchases with the same date. When you record a purchase, the date and price information are automatically used to update the price history file. Open share summary information is maintained within the local security file. There are two reasons for doing this. First, this lets you use an averaging method without suffering through all open shares being updated with each transaction. This also lets you keep the actual purchase price for later maintenance. Second, it allows Capital Gainz to quickly display the open status of your securities, without totalling all the open shares records each time. You add share purchases by using the Activity option of the Main Menu to get to the Buy Shares Form. Open shares records can be added, changed, or deleted by going through the Log Maintenance option of the Main Menu to get to the Buy Shares Form. Even when using an averaging method, the original purchase price is used when you change or delete open shares records. Buying shares creates an open shares record with the following information: o Local Symbol: the purchased local security's symbol. o Date: the date the shares were purchased. You can record multiple purchases on the same date for the same security. o Shares: the number of shares purchased. o Price: the purchase price of the shares. Even when using an averaging method, the price in the open shares record is always the actual purchase price. o Amount: the purchase amount, not including any commission. o Commission: the commission or load charged on this purchase. o Notes: any comment you wish to make about this purchase for future reference. You can enter up to 20 characters. 2.3.3 Closed Shares File Every time you record a sale, one or more closed shares records are created. Each open shares record affected by the sale results in a closed shares record. If you sold all the shares in an open shares record, then the open shares record is deleted. If you only sold some Capital Gainz Users Manual 18 of the shares, then the open shares record is modified to reflect the number of shares remaining after the sale. With this approach, you can 'unsell' shares: when deleting a closed shares record, you can elect to unsell it, meaning that the original open shares record is recreated. Closed shares records are associated with a local security, which is in turn associated with a global security. You can record multiple sales with the same date. When you record a sale, the date and price information are automatically used to update the price history file. Open share summary information maintained within the local security file is updated based on the selling information. You sell shares by using the Activity option of the Main Menu to get to the Sell Shares Form. Closed shares records can be added, changed, or deleted by going through the Log Maintenance option of the Main Menu to get to the Sell Shares Form. Even when using an averaging method, the original purchase price is used when you 'unsell' a closed shares record. Selling shares creates one or more closed shares record with the following information: o Local Symbol: the sold local security's symbol. o Date: the date the shares were sold. You can record multiple sales on the same date for the same security. o Short Term Flag: if the period between the purchase and sale dates was less than or equal to the holding period at the time of the sale, this flag is true. o Shares: the number of shares sold. o Price: the selling price of the shares. o Amount: the amount received for selling the shares, before subtracting any commission. o Commission: the commission or load charged on this sale. o Notes: any comment you wish to make about this sale for future reference. You can enter up to 20 characters. o Open Share Information: the purchase date, purchase price, purchase amount, purchase commission, and basis of the associated open shares. By maintaining this information, Capital Gainz can 'unsell', or recreate, open shares records when you delete closed shares records. The purchase amount and basis will be the same unless you used an averaging sell method. Capital Gainz Users Manual 19 2.3.4 Distributions File Every time you record a distribution, a distribution record is created. Distribution records are associated with a local security, which is in turn associated with a global security. You can record multiple distributions with the same date. When you record a distribution, the date and per share information are automatically used to update the price history file. Distributions include dividends, interest, short term capital gains, long term capital gains, and miscellaneous fees. You add distributions by using the Activity option of the Main Menu to get to the Distribution Form. Distribution records can be added, changed, or deleted by going through the Log Maintenance option of the Main Menu to get to the Distribution Form. Recording a distribution creates a distribution record with the following information: o Local Symbol: the local security's symbol. o Date: the date of the distribution. o Type: the type of distribution, such as dividends/interest, capital gain, or fee. It's important to distinguish dividends/interest distributions to get accurate yield calculations. Fees include miscellaneous charges, such as IRA maintenance fees. o Amount: the amount of the distribution. This number is positive, even for fees. o Amount Per Share: the per share amount of the distribution. This value is important in calculating an accurate total return figure. It does not apply to fees. o Notes: any comment you wish to make about this distribution for future reference. You can enter up to 20 characters. 2.4 Global Files The Global Files help screen shows the composition of the non- activity data files used by Capital Gainz: [[Screen not in online version.]] Capital Gainz Users Manual 20 2.4.1 Portfolio File A portfolio separates holdings, and contains zero or more local securities. The portfolio file contains information about each defined portfolio. When using Capital Gainz, forms and reports that are portfolio specific always show the associated portfolio's name, if you defined more than one portfolio. Local security maintenance and buy, sell, and distribution activity always apply to the current portfolio, which is the last portfolio opened. Portfolio information is shown in the Portfolio Table, available from the Main Menu, and inserted or changed with the Portfolio Form. Also, you set the current portfolio from the Portfolio Table. The Portfolio File maintains the following information: o ID: a value between 1 and 999 that uniquely identifies the portfolio. This number is used as the last 3 characters of the DOS file names of the associated local security, open shares, closed shares, and distribution files. o Name: up to 30 character long descriptive name. This name is displayed on activity forms, tables, and reports that reference this portfolio. o Description: up to three 30 character lines of descriptive text. 2.4.2 Global Security File A global security defines a particular stock, bond, or mutual fund. Local securities are linked to global securities, and have actual associated activity. The price history of a security is associated with the global security. Thus, whenever you update prices, you are directly updating the prices of the global security, and indirectly updating the prices of the local security. Global and local securities both have symbols associated with them, but the symbols can be the same. The global security symbol must be unique over all global securities, but the local security symbol must only be unique within a given portfolio. If you have two portfolios that both contain IBM stock, you can set the global symbol and both local symbols to 'IBM'. On the other hand, you may have one portfolio that holds IBM stock both within and outside an IRA plan. In this case, you can define the global symbol as 'IBM', and link two local security symbols, say IBMT (IBM taxable) and IBMTF (IBM tax- free) to it. Global security information is shown in the Global Security Table, available from the Main Menu, and inserted or changed with the Global Capital Gainz Users Manual 21 Security Form. The Global Security File maintains the following information: o Global Symbol: a 1-5 character id, unique over all portfolios. This can be the stock symbol used in the newspaper listings, or any other representative string. o Name: a full, descriptive name for the security. You can enter up to 25 characters. o Broker/Investment Company: the name of the broker or investment company associated with the global security. You can enter up to 30 characters. o Account Number: the brokerage account number, mutual fund account number, or company dividend reinvestment plan number. You can enter up to 20 numbers or characters. o Type: the security type, selected from a predefined list. This defines the security's class when determining allocation ratios. o Interest Flag: if true, then holders of this security receive interest instead of dividends. Most securities, and all mutual funds, pay out dividends. Short term fixed income securities pay out interest. o Dividends Per Year: the number of dividend payouts per year. For instance, if the company pays dividends annually, enter 1. If the company pays dividends monthly, enter 12. This value is very important in calculating a security's current yield. 2.4.3 Broker/Investment Company File Broker/investment company information lets you keep names, addresses, and phone numbers of brokers and mutual fund companies used to buy and sell shares in your portfolios. Broker/investment companies and account numbers occur in both local and global security records. You probably want to associate a mutual fund company with the mutual fund in the global security record, but specify the account number in each local security record. On the other hand, you probably want to associate some default or 'dummy' broker with a stock in the global security, and define the actual broker holding the shares in the local security. This approach was taken to give you maximum flexibility. Broker/Investment Company information is shown in the Broker/Investment Company Table, available from the Main Menu, and inserted or changed with the Broker/Investment Company Form. The Broker/Investment Company File maintains the following information: Capital Gainz Users Manual 22 o Name: the name of the broker/investment company. You can enter up to 30 characters. o Address: the address of the broker/investment company. There are two lines of 30 characters each, so one line could include an individual broker's name. o City: the city where the broker/investment company is located. o State: the two character code of the state where the broker/investment company is located. o Zip: the zip code of the broker/investment company. o Phone: the phone number of the broker/investment company. 2.4.4 Price History File Price History information includes prices, distributions, and stock splits. You can display it in a table from the Local or Global Security Table, and insert or change it with the Price Form. While price history information is really associated with a global security, it can be accessed via the local security through its global security link. Buying or selling shares may create price history records, depending on the price history interval setting in the User Settings File. Recording distributions and executing stock splits also add records. Each price history type/date is unique, so buying or selling shares may replace existing price history records. Activity logs contain price/dates and distributions, so there is no danger of losing activity information by changing the Price History File. The Price History File is just a tool to use for security analysis, and the Capital Gainz Utility Program can reconstruct it from the activity logs. The Price History File contains the following information: o Global Symbol: the global security's symbol. o Date: the date associated with the price history entry. o Type: the type of price history entry: price, distribution, or stock split. o Price: the value associated with the price history entry - a price, per share value, or split ratio. Capital Gainz Users Manual 23 2.4.5 User Settings File User settings allow you to maintain dynamic global information and to customize Capital Gainz. The User Settings File contains only a single record. The fields in this file, with the shipped default values, are: o ID: this is set to 'SETTINGS'. o Revision: the current Capital Gainz revision number. o Holding Period: the number of days that shares must be held to be classified as long term. This value is used to determine whether the gain/loss from a sale is classified as long term or short term, and for classifying long term/short term values in displays and reports. (Default = 365) o Confirm Add/Update/Delete: if 'YES', you are prompted for confirmation before a new record is written or deleted. Actions that add, change, or delete multiple records will always prompt for confirmation. (Default = 'NO', 'NO', 'YES') o Reinvest: if 'YES', you are prompted for reinvestment information after recording a distribution. (Default = 'YES') o Log Transactions: if 'YES', transactions are logged to prevent file inconsistencies due to abnormal program termination during critical processing periods. THIS OPTION CAUSES SEVERE PERFORMANCE DEGRADATION, AND IS CURRENTLY DISABLED. If you worry about file damage, you should perform regular backups instead. Note that this value is completely unrelated to activity logs. (Default = 'NO') o Append Reports: if 'YES', specifying a DOS file when printing a report will append the report to the file. Otherwise, the report will overwrite the original file without warning. (Default = 'YES') o Backup Command: the DOS command string executed when you select 'Backup' from the main menu. (Default = 'CAPGNZBU A') o Price History Interval: the interval for price history entries. If this value is 28, then price entries are saved every 28 days, or about every month. Thus, if you record purchases on 1/1, 1/15, and 1/31, only the 1/1 and 1/31 prices are saved in the Price History File. To save all price entries, enter 0. You'll probably want to set the price history interval to 7, for saving weekly entries, or 28, for saving monthly entries. Shorter intervals = more entries = more disk space consumed. (Default = 28) o Lines Per Page: the number of report lines to print on a single Capital Gainz Users Manual 24 page. This will vary depending on the printer. (Default = 58) o Line Draw Chars: if 'YES', then the extended ASCII line drawing characters are used in reports. If your printer does not support these characters, enter 'NO' to use the substitute characters '-' and '='. (Default = 'YES') o Colors: the colors for each grouped set of screens. (Defaults: omitted, thus deflecting criticism of my taste in colors.) o View File Command: the command invoked to view a file or report on the screen. If left blank, then the internal file viewer is used. (Default: blank) o Commission in Basis: if 'YES', then the buy and sell commissions are factored into the basis for gain/loss percentages. This results in slightly lower absolute gain/loss percentages then if they were not included in the basis. Previous versions of Capital Gainz did not include commissions in the basis, since the amount paid was never actually used to buy shares. (Default: 'NO') o Portfolio ID: the current portfolio's ID. This value is set whenever you open a portfolio. When you start up Capital Gainz, this portfolio is opened initially. (Default: 001) o Accept Key/Reject Key: the internal key code for the Form Accept/Form Reject short cut keys. (Default: CTRL-ENTER and CTRL- ESC) o Price File: the comma-delimited ASCII price file used to update the price history file every time you start up Capital Gainz. (Default: blank) o Short Sales: if 'YES', then whenever you record a share purchase, the closed shares file is searched for outstanding short sales. This value is automatically set to 'YES' if you execute a short sale. By specifying 'NO', you get slightly better performance when you purchase shares. (Default: 'NO') 2.5 Field Limits The following limits apply to any one record. The sum of multiple records may exceed these values. If you see all asterisks ('*') displayed in a form or a report, then the totals are too big to fit in the report field. Open Shares: 0 - +999,999.9999 (per record) Open, Closed Amount: 0 - +999,999.99 (per record) Capital Gainz Users Manual 25 Open, Closed Price: 0 - +9,999.9999 Open, Closed Commission: 0 - +9,999.99 (per record) Distribution Per Share: 0 - +9,999.9999 (per record) Local Security Total Open Shares: 0 - +99,999,999.9999 Local Security Total Open Amount: 0 - +99,999,999.99 Local Security Total Open Commission: 0 - +999,999.99 Percentages: -999.99% - +999.99% 2.6 Reports All reports are available from the Report Menu, except the Open Information for Shares Sold Report, which is only available after selling shares. As indicated, reports may also be available from certain tables. Reports use the following global settings: o Append Report: if 'YES', a report directed to an existing DOS file is appended to the file. If 'NO', any existing DOS file is overwritten without warning. o Lines Per Page: the number of printed lines on each page. o Line Draw Chars: if 'YES', the extended ASCII line drawing characters are used. If your printer does not support these characters, enter 'NO' to use the alternates '-' and '='. The only reports that show values that include open information for shares that have been subsequently sold are the Activity Summary Report and the Mixed Detail Report. For reports such as the Open Shares Detail Report, shares that have been sold are not included, regardless of the specified date range. For the following reports you can: 1) Send output to the screen, the printer or an ASCII file. o Portfolio Summary Report: shows the current open value and gain/loss for each portfolio. This report is also available from the Portfolio Table. o Broker/Investment Company Report: shows information for all brokers/investment companies, along with managed local securities and account numbers. This report is also available from the Broker/Investment Company Table. You can choose to total commissions and fees over a specified period. o Global Securities Report: shows all global securities, including current price and yield. This report is also available from the Global Security Table. Capital Gainz Users Manual 26 o User Settings Report: shows the current user settings. This report is also available from the User Settings Form. For the following reports you can: 1) Send output to the screen, the printer or an ASCII file. 2) Report for the current portfolio or for all portfolios. o Portfolio Detail Report: shows current open values for each local security in the portfolio. You can generate subtotals based on the broker/investment company, and choose either a brief or long format. This report is also available from the Portfolio Table and Local Security Table. o Allocation Report: shows allocation percentages by Security Type. This report is also available from the Local Security Table and Portfolio Table. o Schedule B Report, Schedule D-1 Report, Fee Report: shows Schedule B and Schedule D-1. Presents dividend, distribution, and selling information in a format easily transferrable to your tax form. You are prompted to input the tax year before printing, and you can specify whether or not to round off to the nearest dollar. This report is also available from the Portfolio Table. Also, a Fee Report, summarizing fees paid for the year, is generated as some of them may be tax-deductible. For the following reports you can: 1) Send output to the screen, the printer or an ASCII file. 2) Report for all or selected securities. 3) Report for all or a range of dates. These reports apply only to the current portfolio. o Activity Summary Report: shows the cumulative and short term open, closed, and distribution values along with gain/loss for the specified period. Also shows the security's total return over the period, and combines purchases, sales, and distributions to present your performance over the period. This report is also available from the Local Security Table. o Activity Detail Report: shows individual transactions from the activity logs, and a total for the specified period. All logs, a single log, or a chronological list of all activity can be printed. If all logs are requested, they can be grouped by log type or by security. The Open Shares Detail Report is also available from the Open Shares Log. The Closed Shares Detail Report is also available from the Closed Shares Log. The Distribution Detail Report is also Capital Gainz Users Manual 27 available from the Distribution Log. The Mixed Detail Report is also available from the Local Security Table. o Price History Report: shows price history, distributions, and stock splits for a global security. High and low prices are flagged. This report is also available from the Price History Table, via the Local Security Table, and the Global Security Table. Finally, this report is only available after you sell shares: o Open Information for Shares Sold Report: after completing the Sell Shares Form, you can view or print out information resulting from the sale without actually committing the sale. All reports end with a formfeed. Make sure you line up your paper before printing, as Capital Gainz does not output an initial formfeed. Capital Gainz Users Manual 28 Chapter 3 - Installation First, be sure to make backup copies of your original Capital Gainz diskette(s). Electronic media such as diskettes are easily damaged, and a spare can become very valuable in a crisis situation. This chapter describes the Capital Gainz installation procedure in detail. The INSTALL program is straight-forward, and you should not encounter any problems. So, unless you're having problems, or just want to know what's happening during installation, you can skip to the next chapter. 3.1 Installation Dialogue The INSTALL program asks you several questions before installing Capital Gainz. You can use CTRL-C or CTRL-Break to abort the INSTALL program at any time. You are asked: 1) The letter of the drive you are installing from. This is probably A or B. The default is A. 2) The letter of the drive you are installing to. This is probably C or D, but could be F, G, or another network drive. The default is C. 3) Whether or not you want to install the program files. This is usually the case, but you may be installing documentation after having already installed the programs. The default is yes. 4) (If you specified to install the program files.) Whether or not you are upgrading from a previous version. If the version you are installing is greater than the current installed version, you should answer yes. The default is no. 5) Whether or not to install the documentation files. If you ordered a bound manual, you can save disk space by not installing the online version of the manual. If you don't install it, then you can't access it online via the View Documentation function. The default is yes. 6) (Registered version only.) Whether or not to install the Capital Gainz Utility Program. This program includes some non-essential functions, such as copy/move securities, copy/move portfolios, and import/export. You can save disk space by not installing it. If you don't install it, you can still run it directly from the UPGRADE disk. On the same disk as the utility program is a printing utility called DoublePrint, which will print 2 pages per sheet, landscape mode, on HP LaserJets and compatibles. The default is yes. Capital Gainz Users Manual 29 After answering the previous three questions, the INSTALL program determines if you have enough free disk space on the destination drive to install Capital Gainz. The INSTALL program tells you if it looks like there is not enough space, and you are given the option of aborting installation or trying to install Capital Gainz anyway. 7) (If you specified to install the program files.) The directory to install the programs to. If the directory specified does not exist, it is created. The default is \CAPGNZ. If you are upgrading Capital Gainz, be sure to specify the directory containing the old files. Whether you said you are upgrading or not, the INSTALL program determines the current installed version. The INSTALL program displays the version number found, and you can accept it or change it. 8) (If you are upgrading to a new version.) You are asked if you have multiple directories set up with different data files - this was the only way to maintain multiple portfolios before version 3.0. If you previously installed Capital Gainz and only ran it from the program directory, answer no. The default is no. If you answered yes, then the INSTALL program asks you for the directories containing data files. These can be full pathnames or relative pathnames. When you're done specifying directories, ENTER a blank directory. 9) (If you specified to install the documentation files.) The directory for the documentation files. If the directory specified does not exist, it is created. The default is the directory specified for the program files. 10) (Registered version only.) The registration number. If you are installing an upgrade, then the default is your current version's registration number. Otherwise, you need to enter the registration number from the Capital Gainz diskette. 11) (Registered version only.) Your name. This personalizes the startup screen. 12) Whether or not to modify your CONFIG.SYS file. Capital Gainz can have many files (index and data) open at a given time, so the 'FILES' line in CONFIG.SYS should be at least 30. INSTALL scans your CONFIG.SYS file, and adds or modifies the 'FILES' line so it's set to 40 or the current value, whichever is greater. The default is yes. If you specify no, then the INSTALL program tells you that the 'FILES' line in your CONFIG.SYS must be at least 30. If this value is changed, you must reboot your computer for the new value to take effect. Capital Gainz Users Manual 30 13) Whether or not to copy the startup batch file to the root directory. The Capital Gainz startup file is CG.BAT, and it's created in the specified program directory. By answering yes to this question, CG.BAT is also copied to the root (\) directory. This just relieves you of changing to the program directory before starting Capital Gainz. The default is yes. 14) The path for temporary files created during printing and DOS command execution. You can specify a common temporary directory, such as C:\TMP. Or, for better performance, you can specify a RAM drive such as E:\. (Consult your DOS documentation for details on how to set up a RAM drive.) This directory is not verified, and not created if it does not exist. 15) Whether or not everything is correct. All of your answers are displayed. If you verify that everything is correct, then installation begins. The default is no. If you said that everything is not correct, you can abort the installation process. If you don't abort, you are taken back to the first question, and the default answers are set to what you previously entered. 3.2 Installation Process After answering all the questions, the installation process is executed: 1) If you are upgrading to a new version, any obsolete files are removed. Then, the Capital Gainz Utility Program is automatically invoked to perform the upgrade. If you don't have data files in multiple directories, you are first given a chance to backup your data files. Then, the files in the program directory are upgraded from the current version number to the new version number. If you have data files in multiple directories, then the specified directories are upgraded sequentially. Before each directory is upgraded, you are given a chance to backup your data files. Then, the files in the directory are upgraded from the current version number to the new version number. Depending on the size of the existing data files to be upgraded, the upgrade process may run for several minutes. If the upgrade succeeded, the Utility Program ends and the INSTALL program continues. If the upgrade failed, an error is displayed and you must hit ENTER to continue. The Utility Program ends, and installation is aborted. Capital Gainz Users Manual 31 2) If you said to install the program files, the INSTALL program first checks to see what archive format the Capital Gainz program files are in. INSTALL requires the program files to be in an archive named CPGNZP.zzz, where 'zzz' can be: EXE - files extracted by executing the archive ZIP - files extracted by PKUNZIP or UNZIP LHA - files extracted by LZH ARC - files extracted by ARCE or ARC-E For archive formats other than EXE, the extractor program must be available via the DOS PATH. First, the README.DOC file is copied from the PROGRAM disk to the destination program directory. Then, the following files are extracted from CPGNZP.zzz on the PROGRAM disk to the destination program directory: CAPGNZ.EXE CAPGNZ.HLP CAPGNZBU.BAT CAPGNZRS.BAT CAPGNZSH.COM If CAPGNZBU.BAT or CAPGNZRS.BAT exist, the originals are copied to CAPGNZBU.SAV and CAPGNZRS.SAV. This lets you retain any changes you made, and reapply them after installation. 3) If you said to install the documentation files, the INSTALL program first checks to see what archive format the Capital Gainz documentation files are in. INSTALL requires the documentation files to be in an archive named CPGNZD.zzz, where 'zzz' specifies the archive format as described previously. Then, the following files are extracted from CPGNZD.zzz on the DOC disk to the destination documentation directory: CAPGNZ.DOC HISTORY.DOC LICENSE.DOC OMB.ASP 4) If you installed the online users manual, then a small document index, CAPGNZ.IX, is generated in the destination program directory to speed up accessing specific pages while viewing the manual online. 5) If you said to install the utility program, the INSTALL program copies CGUTIL.EXE from the UPGRADE disk to the destination program directory. Also, the DoublePrint utility program, DP.EXE, is copied to Capital Gainz Users Manual 32 the program directory. 6) If you said to modify your CONFIG.SYS file, it's scanned for the 'FILES' line. If the number of files is less than 30, then the line is changed to 'FILES=40'. If no 'FILES' line is found, then it is added. 7) CG.BAT, the Capital Gainz startup batch file, is generated in the destination directory. If CG.BAT exists, the original is copied to CAPGNZ.SAV. This batch file sets the CLATMP environment variable if you specified a temporary directory. If you did not specify a temporary directory, or the temporary directory is invalid, Capital Gainz uses the program directory instead. 8) If you said to copy the startup batch file to the root directory, the CG.BAT file just generated is copied to the root. 9) CAPGNZ.INF, an ASCII file, is generated. This file contains information read by Capital Gainz at startup, such as version number, registration number, and temporary directory. 10) When installation is complete, you are left in the Capital Gainz directory. Admittedly, INSTALL is not pretty - the line-at-a-time interface is ancient technology. But, since INSTALL will usually only be run once, why waste disk space and programming time on something more elaborate? INSTALL can be run as many times as needed. If you incorrectly entered your registration number, decided you would like to install the online documentation, or inadvertently deleted CAPGNZ.EXE, just invoke INSTALL again. Your data files will not be affected. Alternatively, you can make some changes simply by changing the CAPGNZ.INF file with a text editor. 3.3 Installation Failures INSTALL failures can be classified as follows: o Failure after starting INSTALL but before any files are upgraded or copied from diskette. Any directories created by INSTALL may still exist, but are empty. If the upgrade consistently fails to start, you can try this approach: Run INSTALL, but specify that the current installed version is the same number as the new version. After INSTALL completes, manually execute the Utility Program, CGUTIL.EXE, to upgrade your data files. This program is described in Chapter 17. Capital Gainz Users Manual 33 o Failure during data file upgrade. This leaves your data files in an unusable state. You should restore your data file backup. For instance, if Capital Gainz is in C:\CAPGNZ and you used CAPGNZBU.BAT to backup to diskette A, then put the backup disk in drive A and, while in the program directory, enter: CAPGNZRS A This batch file simply restores the files from the diskette. It's equivalent to: COPY A:\*.* . Try to reinstall Capital Gainz. o Failure after data file upgrade, but before INSTALL completes. In this case, you're left with upgraded data files but an old version of Capital Gainz executables. You can restore your data files as just described and start over. Or, since the data files are already upgraded, you can restart INSTALL and specify that the current installed version is the same as the new version. The INSTALL program is written for a particular version of Capital Gainz. It determines the currently installed revision of Capital Gainz by first looking in the CAPGNZ.INF file, then in the SETTINGS.DAT file, and then in CAPGNZ.EXE. (Yes, I kept changing my mind on where to put it.) Common installation problems include: bad diskettes, corrupt data caused by electronic transmission errors, and incorrect composition of the archives on the diskettes. The result of these kinds of problems are installation errors indicating: invalid archive, invalid archive format, or disk read errors. If you run into a similar problem, and can't get Capital Gainz to install: o If you have a registered version, contact us and we will send you replacement diskettes. o Otherwise, contact your original source for a replacement. If you encounter problems getting a replacement, contact us directly and let us know where you obtained your copy. Capital Gainz Users Manual 34 Chapter 4 - Quick Tour This chapter gives you a quick tour of Capital Gainz by walking you through some representative activities. Features are not covered thoroughly - the rest of this voluminous manual contains all the details you could ever want. Also, remember that you can always use the F1 key to bring up context-sensitive help screens. First, let me introduce you to the philosophy behind Capital Gainz: flexible and simple access to all of your investment information. Menus, forms and tables are displayed in overlapping windows, when possible. You'll use the following types of screens in your tour: Menus - menus are simple: highlight your choice and hit ENTER, or hit the indicated short cut key. Also, since you never go more than two menu levels deep, you'll never get lost. Entry Forms - the current field is highlighted. The ENTER key and the DOWN ARROW key accept the current field and advance to the next one, accepting the form when used on the last field. The ESCAPE key and the UP ARROW key move you back one field, exiting the form when used on the first field. When a field requires a value from a known list, such as a security symbol, an invalid or blank entry brings up a table of valid values for you to choose from. Some fields include a list of valid responses directly on the form. When entering values with the keyboard, you can use the LEFT ARROW, RIGHT ARROW, DEL, and BACKSPACE keys to edit a field. Also, forms usually include a labeled row of keys for performing additional functions, such as a short cut screen accept key. Tables - records are presented in tabular form, and the current record is highlighted. Use the UP ARROW key to move back one record, the DOWN ARROW key to move ahead one record. Use PGUP to scroll back one page, and PGDN to scroll ahead one page. Usually, INS brings up an Entry Form to add a record, ENTER brings up an Entry Form to change the highlighted record, and DEL removes the highlighted record. Also, tables include a labeled row of keys for performing additional functions, such as recording a stock split. If more functions are available than can fit on the screen, there is a key labeled 'More' to show you more functions. Reports - you can send reports to a printer, the screen, or a file. Options are available via labeled function keys. You can limit the entities reported on, like only printing activity for specific securities. Or, you can specify the begin and end dates to report over. Most reports are available from the related tables, as well as Capital Gainz Users Manual 35 from the Report Menu. Other - status screens keep you updated on when Capital Gainz is performing a requested operation, such as marking shares to be sold. Popup dialogue screens accept information such as date ranges and report destination. Confirmation screens prevent inadvertent keystrokes from accidentally writing or deleting records. In this quick tour, I'll introduce you to the fundamentals of Capital Gainz by actually recording some investment activity. This activity will represent normal Capital Gainz use. Please type in all data exactly as instructed - errors are intentionally introduced to demonstrate how to fix them. Errors rarely occur on your printed statements from brokers and investment companies, so I'm actually simulating data entry errors that occur when you put this information into Capital Gainz. To use Capital Gainz, you define certain values first, such as portfolios and securities. Then, you repeat activities such as entering transactions and analyzing information. You may need to occasionally change portfolio and security information, but the bulk of your activity will be dealing with buy, sell, and distribution information. The first thing you need to do is start Capital Gainz with the CG.BAT batch file. This batch file is in the directory you specified at installation, and, depending on how you installed Capital Gainz, it may also be in the '\' directory. After hitting any key at the Capital Gainz logo screen, you're taken to the Main Menu. At the top, you see the current portfolio you're working in - '<<Default Portfolio>>'. This portfolio is created when you start up Capital Gainz for the first time. The options in the menu are split into local and global sections. The local options apply only to your current portfolio. The other options are labeled global since they apply to all portfolios. For instance, purchasing shares is local to a single portfolio, but managing broker information is global to all portfolios. [[Screen not in online version.]] Let's change the name of your current portfolio. Either highlight 'P) Portfolio' or hit the 'p' key. This brings up the Portfolio Table, which lists a single portfolio. [[Screen not in online version.]] There's a check mark next to this portfolio indicating that it's the current one, and it's highlighted since there are no other portfolios. Hit the function key labeled 'Change' at the bottom of the screen, and a Portfolio Form pops up with the current values filled Capital Gainz Users Manual 36 in. Use the DOWN ARROW or ENTER key to highlight the 'Name' field, and enter a name such as 'The Nest Egg', followed by the ENTER key. You can then enter a description if you'd like. [[Screen not in online version.]] To accept the changes and write the record, move through the rest of the fields with the ENTER or DOWN ARROW key - when you leave a description line blank, or enter all of them, the record is updated. Or, use the short cut key combination listed at the bottom of the screen to accept all the fields. This takes you back to the Portfolio Table, where you see the new portfolio name. While we're on the Portfolio Table, let's add another portfolio. Hit the INS key to insert a new record, and a Portfolio Form with just the ID filled in comes up. Portfolio IDs range from 000 to 999, and this is a good example of how Capital Gainz 'guesses' at field values when possible. Maybe you'd like to add a portfolio for your son, Junior. You enter information as before, and give the portfolio a descriptive name, such as 'Junior's Portfolio'. When you complete the form this time, the Portfolio Table shows two portfolios. The one you just added is highlighted, and has a check mark next to it indicating that it is now the current portfolio. Make 'The Nest Egg' current by using the UP ARROW key to move the highlight bar up, and then hitting the ENTER key to move the check mark. To exit from the Portfolio Table and return to the Main Menu, hit the ESC key. Now that we have some portfolios defined, we need to add some securities. Securities are divided into local and global securities. Global securities can be accessed by any portfolio, include a symbol and name, and are associated with a history of price records. Local securities contain purchase, sale, and distribution information on a global security for a particular portfolio. To add a global security, choose the 'G) Global Security' option on the Main Menu, or just hit the 'g' key. You should now be at the Global Security Table, with a message indicating there are no records in the table. While Capital Gainz automatically creates a default portfolio for you, it can't create securities. To add a global security, hit the INS key. This brings up the Global Security Form. Let's create a security for the tax-free bond fund you bought from Bob's Mutual Funds company. The symbol and name can be anything you want - we'll use 'BOBTF' and 'Bob's Tax Free Bond Fund'. We haven't defined any brokers by using the Broker/Investment Company choice on the Main Menu. Leave the broker name field blank and hit ENTER to bring up the empty Broker/Investment Company Table. Use the INS key to bring up an empty Broker/Investment Company Form, then fill in the information for Bob's Mutual Funds: Capital Gainz Users Manual 37 Name:Bob's Mutual Funds Address:1313 Good Luck Ln. City:Podunk State:NC Zip:27709 Phone#:800-123-4567 [[Screen not in online version.]] After entering the last field, you're taken back to the Broker/Investment Company Table, and the new Bob's Mutual Funds investment company is highlighted. Hit ENTER to select it and return to the Global Security Form. Next, we come to the 'Account Number' field. As you progress through this tour, you'll notice that Broker/Investment Company and Account Number information can be entered for global AND local securities. This option provides flexibility: o For mutual funds, you can associate an investment company, such as Bob's Mutual Funds, with a given fund. Whenever you add that fund to a portfolio as a local security, it will automatically be associated with the correct Broker/Investment Company record. However, the account number will change for different holdings of the fund, so leave the number blank for the global security. o For stocks, you can set up a default broker for the global security. When you add a local security, you can use the default broker - with the account number filled in - or choose another broker. o For mutual funds that you buy through a broker, you can associate the investment company with the global security and your broker with the local security. There are many options in real life for brokers, investment companies, and account numbers. For Capital Gainz, just remember that you can associate a broker/investment company with a global or local security, and that you can assign an account number to a local or global security. Let's leave the Account Number field blank here. We also need to select a Security Type. Security types classify your holdings, as you'll see later with the Allocation Report. But what value do you use? Capital Gainz has a bunch of fixed types for you to choose from - just leave the Security Type field empty and hit ENTER. No need to remember arcane codes or names. Just use the UP ARROW, DOWN ARROW, PGUP, and PGDN keys to move through the list. When you find and highlight 'Tax Free Bond Fund' in the Bond Funds category, hit ENTER to return to the Global Security Form, inserting Capital Gainz Users Manual 38 the corresponding code. Whenever a security type has 'Tax Free' in its name, any dividends are noted as non-taxable when you generate Schedule B of the tax form. This fund pays dividends monthly, so enter 12 for 'Number of Dividends' to generate correct yield calculations. [[Screen not in online version.]] Just like with the portfolios, entering all the fields writes the record and returns you to the Global Security Table. [[Screen not in online version.]] Now that we have a global security defined, let's add it to our portfolio. Use the ESC key to return to the Main Menu, and choose 'S) Security'. By now you should know what to expect: the Local Security Table comes up, and you hit INS to bring up the Local Security Form to add a record. Notice that Capital Gainz displays your current portfolio at the top of the form. On this form, you need to enter the local symbol and link it to a global symbol. Most of the time you'll use the same value for both the local and global symbols. But, the ability to link multiple local symbols to a single global symbol comes in handy if you own shares of a mutual fund both in an IRA and a regular account. All the pricing information is centralized in the global security, but different local securities keep the two accounts separate. Of course, you also could put them in separate portfolios and use the same value for the global symbol and both local symbols. Let's use 'BOBTF' for this local security's symbol. Then, link it to the global security. You can either enter 'BOBTF' as the global security, or just leave the field blank and hit ENTER. Similar to the Security Type entry on the Global Security Form, you're shown a list of global securities to choose from. Although the single entry in the table makes this somewhat less than interesting now, just think how handy this capability is if you have defined 50 or so global securities. Also, notice there are function key options to add, change and delete securities. Hit the INS key, and the Global Security Form pops up. Thus, we didn't have to define the global security from the Main Menu - we could have added it while we were adding the local security. Hit ESC to exit from the Global Security Form without adding anything, and choose the BOBTF global security by hitting ENTER. This returns you to the Local Security Form. Notice that the associated global security's information is displayed in the lower half of the Local Security Form. However, you cannot change any of the values on this part of the form while inserting a local security. Later, if you bring up the Local Security Form to change this security, you have the option of flipping to the Global Security Form to change global information. We already discussed why there is a field for broker name here as well as on the Global Security Form. As you can see, Capital Gainz Capital Gainz Users Manual 39 retrieved the broker/investment company associated with the specified global security and filled it in here. Enter an account number for BOBTF, like 123456789. Leave the Sell Method field blank, and hit the ENTER key to see the variety of selling methods supported by Capital Gainz. Even though you select a method here, you can change it when you actually sell shares. The most commonly used methods are First-In/First-Out (FIFO) and Specific Id. For now, select FIFO. This fund is not in an IRA or non-taxable retirement fund, so enter NO for Tax Exempt. You can highlight NO or just hit the 'n' key. Be sure you differentiate between a non-taxable holding and a holding that offers tax-free interest or dividends, such as Bob's Tax Free Bond fund. Statements received from the mutual fund indicate the shares and price precision for each fund. Bob's Mutual Funds uses 4 decimal points for the price per share, and 2 decimal points for the number of shares. After entering these last two fields in the Local Security Form, you are returned to the Local Security Table. [[Screen not in online version.]] Hit ESC from the Local Security Table to return to the Main Menu. Finally, we can record some activity. Let's say you have a statement from Bob's Mutual Funds (handwritten by Bob himself!) with the following information: Capital Gainz Users Manual 40 Date Transaction Amount Price Shares ----------------------------------------------------------------- 1/02/91 Share Purchase 50.00 15.1568 3.30 1/31/91 Dividend Reinvested 0.26 15.1841 0.02 (0.0788 per share) 2/03/91 Share Purchase 200.00 15.1704 13.18 2/28/91 Dividend Reinvested 1.36 15.1636 0.09 (0.0824 per share) 3/02/91 Share Purchase 200.00 15.0909 13.25 3/28/91 Dividend Reinvested 2.40 15.1162 0.16 (0.0804 per share) 4/01/91 Share Purchase 100.00 15.2458 6.56 4/30/91 Dividend Reinvested 2.92 15.2735 0.19 (0.0799 per share) 5/01/91 Share Purchase 100.00 15.3519 6.51 5/31/91 Dividend Reinvested 3.60 15.3506 0.23 (0.0832 per share) 6/01/91 Share Purchase 200.00 15.1087 13.74 6/28/91 Dividend Reinvested 4.19 15.0495 0.28 (0.0739 per share) 6/28/91 L.T. Cap Gain Reinv 7.18 15.0495 0.48 (0.1266 per share) Total Shares Owned: 57.49 Choose the 'A) Activity' option on the Main Menu and 'B) Buy Shares' from the Activity Menu to bring up the Buy Form and record the initial purchase. Notice that Capital Gainz displays a fractions-to-decimal table here - this is handy when you receive confirmations that use fractional values. As you can see, Capital Gainz filled in the symbol and date fields. You can, of course, change these. Capital Gainz remembers certain key values that you entered, such as the last local security symbol, the last global security symbol, and the last date. This saves a few steps when you are performing multiple activities on a given security. The symbol field in the Buy Form is for the local security's symbol, since a share purchase applies to a specific portfolio. At this point, you can accept the displayed value of BOBTF or erase the field and hit ENTER to bring up the list of local securities. For now, accept BOBTF. You need to enter the actual purchase date, 1/02/91, in the date field. The next three fields are Number of Shares, Price, and Amount. You actually only need to enter values for two of these fields, and Capital Gainz calculates the third one. Leave the number of shares 0, and enter the price (15.1568) and amount (50.00) from your statement. The number of shares field is calculated, and should match the amount on your statement. Capital Gainz Users Manual 41 Sometimes rounding may require you to change the calculated value. If the calculations are consistently wrong, make sure you set up the precisions correctly on the Local Security Form. Also, you may need to enter the most precise value and let Capital Gainz calculate the rounded value - as is the case with BOBTF. Here, the price per share is more precise than the number of shares, so it's best to let Capital Gainz calculate the number of shares. This is a no-load fund and we're buying directly from the mutual fund company (savvy investors that we are!), so the commission is 0. The Notes field lets you enter a brief comment. Leave it blank for now. [[Screen not in online version.]] After entering all the fields, the purchase record is written and you're taken back to the Symbol field. Capital Gainz assumes that you want to enter more purchases until explicitly quitting and returning to the Activity Menu. As you add shares, a counter in the top right corner of the form is incremented. After you enter a symbol, the current number of open shares for the security is displayed to the right of the 'Shares' field. The next item on our list is a dividend. Even though you reinvested the dividend, you need to record the amount of the distribution and then record the purchase. To begin entering the dividend information, you can either hit the function key labeled 'Distributions', or back out of the Buy Form with the ESC key and choose 'D) Distributions' on the Activity Menu. The symbol field is filled in with the last accessed local security's symbol (BOBTF), and the date is set to the last entered date. Hit ENTER to accept BOBTF as the symbol, and change the date to the distribution date ( 1/31/91). Capital Gainz guesses that you want to enter a dividend, so it fills in the Type field with 'DIV'. This is what we want for now, but you can erase this field and hit ENTER to bring up a list of distribution types. Next, enter the amount of the dividend (0.26) listed on your statement in the Amount field. Capital Gainz divides the amount by the number of open shares to come up with a per share amount. Since the actual distribution amount usually factors in the amount of time you held the shares, this is usually just a very close approximation. (However, it should be accurate for stocks.) If a per share value is listed on your statement, be sure to use it. If no per share value is given, the Capital Gainz calculation should be close enough for reliable yield calculations. Complete the Distribution Form by hitting ENTER at the Notes field. [[Screen not in online version.]] The record is written and a popup form asks if you want to Capital Gainz Users Manual 42 reinvest the dividend. Most investors let their mutual fund companies reinvest distributions in additional shares, so enter YES here. You are taken to the Buy Form, now labeled 'Reinvest Distribution'. You could enter a different symbol to redirect the distribution to a different security, such as sending stock dividends to a money market fund. Since we're reinvesting the amount in the same security, hit ENTER at the Local Symbol field, which should be BOBTF. The amount field is set to the dividend amount, the price field is set to the last price entered for this security, and the number of shares is set to 0. Change the Price field to the value shown on your statement (15.1841). Hit ENTER at the rest of the fields to complete the Reinvest Distribution form and write the open shares record. Now you're back at the Distribution Form. Repeat the above procedures to enter the rest of the purchases and distributions. Move between the Buy Form and Distribution Form by using the function keys or escaping to the Activity Menu. Carefully enter all the values - if Capital Gainz calculates different values, change them. Watch as the total number of open shares displayed on the Buy Form increases, and the counters at the top of the forms are incremented. Be sure you specify the correct Type for the last distribution, a Long Term Capital Gain. When you're done, ESC back to the Activity Menu, and then ESC back to the Main Menu. Let's check if you entered everything correctly. Bring up the Local Security Table, and you'll see the number of shares purchased, the cost of the shares, and your current gain (or loss) so far. Also, the last entered price is shown as the current price, and the yield is calculated by multiplying the last entered dividend per share amount by the number of dividends per year, and then dividing by the last recorded price. [[Screen not in online version.]] Compare the number of shares shown in the Local Security Table to the value given on your statement, to make sure you entered everything correctly. If the values don't match, then you made a mistake in entering the information from your statement. Actually, in this case I made an intentional error in the list of transactions, so the total number of shares is incorrect: total shares is 57.49, but the total shares on the Local Security Table is 57.99. Let's see what's wrong. Hit ESC to return to the Main Menu, and then select 'L) Log Maintenance'. Select 'O) Open Shares Log', leaving 'For All Dates' set. The Open Shares Log comes up, and Capital Gainz correctly guesses the local security symbol you want to view. If you had wanted to view a different symbol's log, you could either enter the value or blank it out and hit ENTER to bring up the list of local securities to choose from. Capital Gainz Users Manual 43 After you hit ENTER to accept BOBTF as the symbol, Capital Gainz builds a table of purchase records. The record dated 6/1/91 is incorrect - the number of shares should be 13.24, not 13.74. (Please don't call Bob - I made this mistake in the list to simulate a data entry error!) Use the DOWN ARROW key to highlight the erroneous record and then hit the ENTER key. [[Screen not in online version.]] Up pops the Buy Form, with the fields filled in. Use the ENTER key or the DOWN ARROW key to move to the number of shares field and change it from 13.74 to 13.24. The Amount field is recalculated based on this change. Be sure to set it correctly. Upon completing the form, you return to the Open Shares Log. When we recorded activity, you kept filling in this form until explicitly exiting. However, when you reach the activity forms from the activity logs, Capital Gainz assumes you are only making a single change or addition. Actually, there are several ways for you to catch data entry errors at the time you make them. First, if the values calculated by Capital Gainz are off significantly - as happened here when you recorded this purchase - then you probably entered an incorrect value. (Either that, or make sure Bob isn't skimming some off the top!) Also, if the calculated per share amount is off considerably, then the dividend amount may be getting applied to an incorrect number of shares. 4.1 Picking Up The Pace Let's add another security to your portfolio. First, you need to add a couple of broker/investment companies. Use the 'B) Broker/Investment Company' option to bring up the Broker/Investment Company Form. Let's add one with a name of 'none' and the leave the rest of the information blank - this will just be a dummy record: none Then, add: Dewey, Cheetham, and Howe 100 Uptick Dr. Churning, NC 27111 800-234-5678 For the Global Security, enter: Capital Gainz Users Manual 44 Symbol:SCI Name:Spatula City, Inc. Broker/Inv Co:none Account Number: Type:Stock Dividends/Year:12 Notice that we specified a broker of 'none' here. Unlike mutual funds, you'll probably buy securities from different brokers. Thus, it makes sense to only specify the broker for the local security. The Local Security information is: Symbol: SCI Linked to:SCI Broker:Dewey, Cheetham, and Howe Account Number:987654321 Sell Method:FIFO Tax Exempt:NO Price Precision:3 Share Precision:4 When you enter this, the broker information will be set to 'none' after linking the SCI local security symbol with the SCI global security symbol. Use the space bar to erase the field, and hit ENTER to bring up the list of defined broker/investment companies to choose from. Finally, here's six months of activity to enter: Date Transaction Amount Price Shares ----------------------------------------------------------------- 1/02/91 Share Purchase 100.00 46.652 2.1435 2/01/91 Dividend Reinvested 1.63 45.292 0.0360 (0.76 per share) 2/01/91 Share Purchase 100.00 45.292 2.2079 3/04/91 Share Purchase 100.00 47.242 2.1168 4/01/91 Share Purchase 100.00 47.807 2.0917 5/02/91 Dividend Reinvested 6.53 48.058 0.1359 (0.76 per share) 5/02/91 Share Purchase 100.00 48.058 2.0808 6/03/91 Share Purchase 100.00 48.410 2.0657 6/03/91 Share Purchase 100.00 48.410 2.0657 Total Shares Owned: 12.8783 Now bring up the Local Security Table again. The 18.84% yield for SCI looks way too high. As you alert readers noticed, SCI pays dividends quarterly, not monthly. If the yield figure looks too high, Capital Gainz Users Manual 45 then you probably specified too high a number for the dividends per year. Likewise, too low a figure indicates that you specified too small a number. If SCI isn't highlighted (it should be), use the arrow keys to highlight it. Hit ENTER to bring up the Local Security Form. The information we want to change, number of dividends per year, is associated with the global security. So, use the function key labeled 'Change Global Security' to bring up the Global Security Form for the global security linked to this local security. Use the ENTER or DOWN ARROW key to move down to the Dividends/Year field, and change it to 4. When you hit ENTER on this last field, the global security record is updated and you return to the Local Security Form. Hit ESC to return to the Local Security Table. The yield displayed is now 6.28%, which is more realistic. Also, the number of open shares for SCI is incorrect. As you should have noticed, the last purchase was erroneously entered twice. Hit ESC to return to the Main Menu, then choose 'L) Log Maintenance'. Select 'O) Open Shares Log', and ALL dates. Hit ENTER at the displayed SCI symbol on the Open Shares Log. Then, use the DOWN ARROW key to highlight the last record - or, use CTRL-PGDN to go directly to the last record. Hit the DEL key to delete it. The Buy Form pops up, showing the record to be deleted, and you are asked to confirm the deletion. By default, Capital Gainz asks you to confirm deletes - you can change this in the User Settings Form. Answer YES to confirm the deletion, and you return to the Open Shares Log. Since this also deletes the Price History entry for this date, highlight the remaining record for this date, hit ENTER, then hit CTRL-ENTER to change it and re-add the price. Hit ESC three times to return to the Main Menu, and then choose 'S) Security' to return to the Local Security Table. We see that BOBTF shows a loss of $6.71, the difference between the cost ($871.91) and current market value ($865.20). The current market value is obtained by multiplying the number of open shares by the latest recorded price: 57.49 * $15.0495 = $865.20. On the other hand, SCI shows a gain of $15.28. Let's analyze a bit more. Hit the function key labeled 'Allocation Report', and tell Capital Gainz to send the report to the screen. This gives you a percentage breakdown of your portfolio holdings by security type. To return to the local security table, hit the ESC key. Next, let's take a look at the price history of BOBTF. Highlight BOBTF, and hit the function key labeled 'Price History'. Look at all dates by hitting the 'All Dates' function key on the Dates Form. The table displayed shows price and distribution information for the local security's related global security. The entries are in most recent to least recent order, the high and low prices are flagged, and the simple average price is calculated. Capital Gainz constructs the price history as you make activity entries. Of course, you also can add, Capital Gainz Users Manual 46 change, or delete entries in this table. The distributions are listed to explain price dips caused by payouts. Return to the Main Menu by hitting ESC from the Price History Table and the Local Security Table. By now, you're impressed with Capital Gainz and want to sell some shares to pay for registration. You also decide that you should register some of the other great shareware that is an essential part of your computing needs. You decide to sell some of your BOBTF shares, so, through the miracle of modern documentation, let's say you called up Bob at Bob's Mutual Funds, sold $100 worth of shares (after considerable cajoling - Bob really wants to keep his few customers), and Bob reluctantly confirmed the sale at $15.25 per share at the end of the day. From the Main Menu, choose 'A) Activity', and then choose 'S) Sell Shares from the Activity Menu. At the Sell Form, enter the symbol, BOBTF. Capital Gainz fills in the sell method you specified when defining the security, sets the number of shares to sell to the total number of open shares, and displays the last entered date. Enter the date of the sale, say 7/1/91. According to the IRS, to sell shares of a mutual fund using a method other than FIFO, you must specify the exact shares in writing at the time of the sale. We didn't do that here, so we'll use the FIFO selling method. Enter 0 for the number of shares, 15.25 for the price, and $100 for the amount. Capital Gainz calculates the number of shares to be 6.56. There was no commission or back-end load charged, so enter 0 for the commission. [[Screen not in online version.]] After entering the last two fields, Capital Gainz scans through your open shares and creates a list of shares to be sold. You can then choose to display or print the list. Let's send it to the screen for now. When you're done viewing the list, hit ESC. Capital Gainz asks if you want to confirm the sale. A brief note about confirmations. Capital Gainz lets you determine if you want confirmation screens to popup whenever you add, change, or delete a record. However, you don't have a choice when an action, such as selling shares, affects multiple records. Capital Gainz always asks for confirmation in those cases. Answer YES to the confirm question, and Capital Gainz processes the sale. Processing involves converting the open shares records into closed shares records. When processing is complete, hit ESC twice to return to the Main Menu. From there, choose 'L) Log Maintenance', then choose 'C) Closed Shares Log' and view ALL dates. Hit ENTER at the symbol field, which shows BOBTF, and you'll see the result of the sale. Since you only executed a single sale, this table looks like the Capital Gainz Users Manual 47 table displayed when you executed the sale. A nifty feature of Capital Gainz is that after deleting a record from the Closed Shares Log, you have the option of 'unselling' it. This means Capital Gainz will add it back to the Open Shares Log, as if you never sold it. As you may have wondered, the confirmation check point when selling shares with Capital Gainz makes an excellent 'what if?' tool. For instance, you could have chosen the Max Gain/Min Loss (MAX) selling method for your sale, to see what shares you could have specified to achieve the greatest gain on the sale. Then, just don't confirm the sale (until it's actually executed). This feature is useful if you need to maximize or minimize gains for tax considerations. 4.2 Analysis Hit ESC three times to return to the Main Menu, and bring up the Local Security Table. Make sure BOBTF is highlighted, and hit the function key labeled 'Activity Summary'. You'll have to scroll through the list of function keys with the key labeled 'More' to find the Activity Summary. Choose all dates, and send the output to the screen. There's a lot of good information here. Purchase, sale, and distribution information is totalled over the period. The total return over the period is calculated, as is the return you achieved. The difference between the two is that total return assumes a 'buy-and- hold' strategy. As your investments build up, it's interesting, and sometimes surprising, to see the difference between 'buy-and-hold' and 'dollar-cost averaging' strategies. Let's take a look at what reports are available. Hit ESC twice to return to the Main Menu, then choose 'R) Reports'. The Report Menu is split into three sections: one for reports that apply to all portfolios, one for reports that apply to all or the current portfolio, and one that applies to the current portfolio and all or selected securities. Function keys let you choose all or the current portfolio, all or selected securities, and all or a range of dates. You've probably noticed that most of these reports look familiar, as they are the same ones you were using for analysis, or that you saw at the bottom of various tables. The Report Menu puts them all together, and adds more options. Let's print out the activity logs for SCI. Notice that reports are set to print for 'All Securities'. Since we only want a report for SCI, hit the key labeled 'Select Securities'. A list of the local securities in the current portfolio is displayed. Highlight SCI and hit the ENTER key to tag it for the report. Hit ESC to return to the Report Menu. Now, you see that Capital Gainz is set to print 'Selected Securities'. You could specify Capital Gainz Users Manual 48 a range of dates with the 'Select Date Range' key, but this is more valuable if you have a few years worth of transactions and want to segment out a single year. For now, stick with all dates. Highlight 'A) Activity Detail', or hit the 'a' key. A short form gives you a couple more options here. Choose to print ALL logs, use the LONG format, and group the report by LOGTYPE. You return to the Report Menu, at the Print To field. Let's send this report to the Printer. As you may have noticed, 'mini' menus, like the list of devices to print to here, work a lot like other menus in Capital Gainz. Highlight your choice and hit ENTER, or just hit the first letter in your desired choice - 'p' for Printer. Capital Gainz flashes some messages indicating what it's doing - again, these are more valuable when many records are being processed. If your printed report has some funny characters separating the headings, or does not have any sort of lines separating them, your printer probably does not understand the default line drawing characters used by Capital Gainz. You could flip through your printer manual and set the dip switches or change the settings in the little LCD menu. But, let's be lazy. Hit ESC to return to the Main Menu, and then choose 'U) User Settings'. This form allows you to customize Capital Gainz. Use the ENTER or DOWN ARROW key to go to the Line Draw Chars field, and choose NO. Hit the screen accept short cut key or ENTER on the rest of the fields, and you return to the Main Menu. Now, your reports will substitute standard ASCII characters for the ones your printer didn't understand. Changes you make to the User Settings apply from that point on - these settings persist since they are actually saved in a file. You can try out some of the options and go back and change them later if you want. In particular, you may want to try out different screen colors with the Colors option, available via a function key labeled at the bottom of the form. 4.3 Finishing Up Let's close our tour by updating the prices of the securities in your Nest Egg portfolio. Choose 'S) Security', hit the function key labeled 'Price Update', and then choose to update prices from the SCREEN. A form cycles through the securities in your current portfolio, letting you update the prices and dates. It was a good week, with BOBTF finishing at $15.50 and SCI at $50.00. After you enter the last security's price, you return to the Local Security Table, which is recalculated to reflect the new prices. You also can update prices with an ASCII file. In fact, you can even specify (in the User Settings Form) that Capital Gainz automatically read this file every time you start it up. Capital Gainz Users Manual 49 Well, that's it for our brief tour. To clean up, just bring up the Portfolio Table and delete the two portfolios you created. Demonstrating all the features of Capital Gainz would have been tedious. Instead, you are now familiar enough with Capital Gainz to start maintaining your portfolio. With your bearings set, you should be able to find answers to most of your questions in the rest of the users manual or on the Help screens. For problems that you can't find answers to, drop us a line or call us. The same goes for software bugs. And just as importantly, send us your ideas. Some of the best features in Capital Gainz are a direct result of user feedback. We are constantly improving Capital Gainz, and registered users are notified of new versions and receive at least one free update. Registered users also get the Capital Gainz Utility Program, whose main purpose is to massage your data files for any changes required by new versions of Capital Gainz. However, it also includes some features like: import/export data files, copy/move securities, and copy/move portfolios. Finally, you can get a great looking, perfect-bound users manual with your registration. Capital Gainz Users Manual 50 Chapter 5 - Questions and Answers Here's a list of frequently asked questions. (Ok, I made some of them up to illustrate potentially confusing points.) 1) "Why does the Gain/Loss calculation for Mutual Fund XYZ in the Local Security Table not include distributions (since these were 'given' to me)?" The Local Security Table shows the current gain or loss of all shares that you've purchased, to help you determine whether you should sell any. Even though distributions such as dividends are 'given' to you, you reinvested them in more shares of the mutual fund. If you use the Activity Summary function, you'll see a calculation that combines all of your buy, sell, and distribution activity to come up with your overall performance figure. In fact, you can compare this to the total return calculations to see the difference between its buy-and-hold strategy and your particular strategy. 2) "Why is Stock XYZ's yield displayed as all '*'s?" You probably entered the Amount of the dividend for the Dividends/Year field in the Global Security Form. This figure should indicate the Number of times a year the company pays dividends, such as 4 for quarterly payouts. 3) "What is the 'Price History Interval'?" The Price History Interval allows you to smooth out the number of recorded security prices. Every price update, purchase, or sale can potentially add to the price history. It's probably a good idea to keep one price per given interval, say 28 days. In this case, only a single price per month will be saved for each security, reducing disk space usage and making it easier to spot price trends. 4) "How do I record an IRA fee for Mutual Fund XYZ?" You record an IRA fee in the Distributions Form, with a type of FEE. You should pay this fee separately to the mutual fund company. If you don't, then they will normally sell shares in your account to cover the fee. After recording the FEE in the Distribution Form, you are given the option of bringing up the Sell Shares Form to record the sale that may have occurred to cover the fee. 5) "Why is the XYZ Table hard to read?" Capital Gainz' default screen colors sometimes are hard to see on CGA Capital Gainz Users Manual 51 screens or laptops. You can use the Colors option on the User Settings Form to alter them to your liking. Or, you can issue the DOS command: MODE BW80 or MODE MONO before starting Capital Gainz. Then, Capital Gainz runs as if it is using a monochrome monitor. 6) "Why does Capital Gainz stop immediately with an error of 'Too Many Files Open'?" Before version 3.0, Capital Gainz required you to manually change your CONFIG.SYS file to accommodate the number of files used. DOS normally creates a base CONFIG.SYS with the FILES set to 10 (or sometimes 20): FILES=10 Capital Gainz may open up to 17 files at one time, so you should set this value to at least 30, with 40 being a good number. This doesn't 'cost' anything in terms of system resources. You also may bump up the BUFFERS statement in CONFIG.SYS to 20, but this does use up system memory. The actual FILES setting varies depending on what drivers and TSRs you normally run, but 40 should handle almost all cases. Version 3.0 of Capital Gainz now lets you have the FILE statement automatically changed on installation. Alternatively, you may have used CTRL-ESC in DOS 5.0, causing Capital Gainz to be swapped out of memory. If you try to start Capital Gainz again, the one suspended in memory is still holding file handles. See your system documentation for how to swap suspended tasks back into memory. You should also look into remapping CTRL-ESC, as explained in Chapter 15. 7) "How do I change or delete a buy, sell, or distribution entry?" To change or delete activity, you need to choose Log Maintenance on the Main Menu. Then, from the Log Maintenance Menu, choose the type of activity and date range. Next, fill in the Symbol field on the Log screen. The buy, sell, or distribution activity for the symbol is displayed in a table from oldest to most recent. Use the UP ARROW, DOWN ARROW, PGUP, PGDN, CTRL-PGUP, and CTRL-PGDN keys to highlight the entry you want to change or delete. Hit ENTER to change the highlighted entry, or DEL to delete it. After hitting ENTER, the activity form pops up with the current values filled in, and you make your desired changes. After hitting DEL, the activity form pops up with the current values filled in, and you are prompted to confirm the deletion. Capital Gainz Users Manual 52 8) "What is the difference between Local and Global securities?" Local securities are securities associated with a particular portfolio, and have associated buy, sell, and distribution activity. Global securities contain information about a particular security, such as name and type, have price histories, but do not have any activity associated with them. You link local securities to global securities by relating the local security symbol to the global security symbol. Deleting a local security does not affect the related global security. The global security's price history remains intact. You can think of local securities as instances of a global security in a particular portfolio. You can associate global securities with many local securities, since a particular security can be held in more than one portfolio. However, you can only associate a local security with a single global security. You may want to link multiple local securities within a single portfolio to the same global security. This lets you own shares of a mutual fund in a regular account, and shares of the same mutual fund in an IRA account, both in the same portfolio. The mutual fund information and price history are centrally maintained with the global security. In fact, you can track a security's price history without ever actually adding it to a portfolio. 9) "Can I own the same local security through multiple Broker/Investment Companies?" Strictly speaking, you can't do this. (But, as you'll see, you can achieve an equivalent result.) Many users want to think that a portfolio is based on the Broker/Investment company. The broker/investment company information is simply a way to associate holdings with a particular broker or mutual fund company. You'll notice that you can associate a broker/investment company with a global security and with a local security. This just gives you an extra measure of flexibility: o For stocks, you can set the global security's broker/investment company to some commonly used 'default' broker. Then, you would use a specific broker with the associated local securities. o For mutual funds, you should specify the mutual fund company as the broker/investment company for the global security. For the local security, you can use the same broker/investment company, or use the broker name if you purchased the shares through a broker. You can achieve the same result as owning the same local security through multiple broker/investment companies. If you want this within a single portfolio, then define two different local securities and Capital Gainz Users Manual 53 link them to the same global security. Or, you can use the same local security symbol in different portfolios, both linked to the same global security. 10) "What are these funny 'D' and 'M' characters are my printed reports?" "Why are there no lines separating sections of my reports?" By default, Capital Gainz uses the extended ASCII line drawing characters for borders and separators in printed reports. (These characters are the same as those used in the displayed forms.) Most printers can print these characters, but sometimes you have to flip a dip switch in your dot matrix printer or load the appropriate font for your laser printer. If you don't want to bother with this, go to the User Settings Form and select NO for the 'Use Line Draw Chars' field. This substitutes the '-' and '=' characters for the similar line drawing characters. 11) "When I try to run Capital Gainz, it stops and prints a DOS error." "When I run Capital Gainz it hangs immediately." "When I run Capital Gainz, it stops with an internal error." "When I install Capital Gainz, the installation procedure aborts." These are all symptoms of a corrupted file, usually caused by diskette damage in the mail or line noise during electronic downloading. See page 33 for information on installation errors. 12) "After recording a distribution, I answer YES to reinvest the shares. Why don't these shares show up in the Open Shares Log?" After recording a distribution and answering the reinvestment question, you still must complete the Buy Form that Capital Gainz brings up. Usually, all of the information is filled in correctly except for the price. Often, users mistakenly escape out of this form. Remember that reinvestment is a two step process: you must record the distribution AND the purchase. Capital Gainz tries to guide you through this process, but it can't be completely automated. 13) "Why does one of my securities show a loss greater than 100%?" By default, Capital Gainz does NOT include commissions in the basis, but does factor it into the gain/loss calculation. The net result is that there is a slight difference in the percentage calculations than if you included the commissions in the basis. The reasoning here is that the commission amount is never actually invested in shares. This is a somewhat pessimistic view, and you can actually end up with over a 100% loss. If you would rather include the commission in the basis, answer YES to the 'Include Commissions in Basis' field on the Global Capital Gainz Users Manual 54 Security Form. Changing this field has no permanent effect, so you can try it both ways. For Tax Form reports, Capital Gainz ALWAYS includes commissions in the basis amount - we want you to pay as little tax as legally possible. If you want to know the details about calculations employed by Capital Gainz, check out Chapter 18. 14) "When I change a distribution per share amount in the Price History Table, how come the distribution per share amounts in the related local securities are not updated?" "How come when I change the distribution per share amount for a local security, the price history table reflects the change but other local securities related to the global security are not updated?" "Ditto the above questions for entered prices." Think of the Price History Table as a repository of information - activity entries put information in, and sometimes change information, but information in the table does not get applied back to the activity records. Problems with applying changes back to the activity records include: o If you delete a distribution record for a local security, should all distributions for local securities associated with the same global security also be deleted? o If you record a purchase for a local security, should purchases/sales for local securities associated with the same global security be changed? What if you purchased a stock for two local securities linked to the same global security, but at different times and for different prices? As you can see, there are a number of ways to handle different situations. To lessen confusion, I took the approach that information flows into, but not out of, the price history file. 15) "When recording a distribution, why does Capital Gainz sometimes ask me if I want to use a particular distribution per share from a given date?" You already recorded a distribution for a local security whose related global security is linked to multiple local securities, or you previously entered a distribution for a global security in the Price History Table. When you go to record a distribution for a local security related to the same global security, Capital Gainz checks if you have recently added a distribution for the global security. If so, it assumes you probably are referring to the distribution associated with the global security. If you answer YES to the 'Use distribution' question, Capital Gainz fills in the information and will not make Capital Gainz Users Manual 55 another entry in the price history table for that global security. If you answer NO, Capital Gainz assumes that you are recording a completely different distribution and will add it to the price history file. 16) "Holy moley! Why is the users manual so long?" I'd get too many complaints if it was too short. I want to explain everything about Capital Gainz, so you can manage your investments correctly and efficiently. If you don't need to read the manual - Capital Gainz should be easy to use - don't print the whole thing out! Use DoublePrint (DP.EXE) to only print out selected parts of the manual. If you have a laser printer, you also can use DoublePrint to print 2 pages per sheet in landscape mode. Finally, you can use the online Help (F1) or View User Manual function instead of printing the manual. 17) "I accidentally deleted some files with the .K01 extension. What should I do?" The files with the .K01 extension are index files, providing fast access to the data files (.DAT). If a .K01 file does not exist for a data file, Capital Gainz will automatically build it on startup. In fact, you really don't even have to back the .K01 files up. So, if you delete these files, no problem - they will automatically be rebuilt. 18) "Why does CTRL-ESC bring up the Task List instead of escaping from the Capital Gainz form?" If you are running Capital Gainz under Microsoft Windows, then Windows grabs the CTRL-ESC sequence before it gets to Capital Gainz. The same goes for DOS 5.0 and the task switcher. You can redefine the Form Accept and Form Reject short cut keys for Capital Gainz in the User Settings Form. 19) "How do I record a mutual fund load?" You can include a front-end load in the cost, or break it out separately and treat it like a commission. I recommend that you separate the load out. Thus, a $1000 purchase of a fund with a 4% load results in $960 cost and $40 commission. Similarly, back-end loads can be subtracted from the selling amount or separated out like a commission. If you separate out the load, then use the 'bid' (net asset value) value when entering activity or updating prices. If you don't separate out the load, use the 'asked' (net asset value plus load) value. 20) "I've messed around with the price history. How can I resynchronize it with my activity?" Capital Gainz Users Manual 56 In the Capital Gainz Utility program, available with registered versions, you can rebuild the price history file from your activity files. 21) "How do I record and then cover a short sale?" To record a short sale, use the Sell Shares activity. From there, specify the 'SHRT' - Short Sale - selling method. When you purchase shares of that local security, Capital Gainz will prompt you to cover any outstanding short sales. 22) "Based on your suggestion, I was maintaining multiple portfolios in different DOS directories. How do I use the multiple portfolio feature with my scattered data files?" Use the Capital Gainz Utility program to upgrade the data files in each of your directories, if it was not done during installation. Then, change to the directory where you want to consolidate all of your portfolios. Use the Capital Gainz Utility program to copy or move the scattered portfolios into the current directory. Portfolios moved from another location will automatically be renumbered so as not to conflict with existing portfolios. 23) No longer applies. 24) "Is there a way to create a 'skeleton' ASCII price file for price updates?" When you update prices from the Global Security Table or the Local Security Table, there is a function key option to create a skeleton price file. Capital Gainz will write a list of your global securities to the filename you request. When you exit Capital Gainz, you can edit this file to include updated price and date information. 25) "Why do I have to enter a broker/investment company for each local and global security?" Some users want to leave this blank, but this conflicts with Capital Gainz' philosophy of bringing up lookup tables when you leave a field blank. The alternative is to define a dummy blank broker, for instance 'none', to use when you don't want to enter the broker/investment company information. 26) No longer applies. 27) "What's the difference between the activity logs and logging transactions?" This was an unfortunate use of confusing terminology. The activity Capital Gainz Users Manual 57 logs refer to the open shares, closed shares, and distribution logs. These are equivalent to the records in the open shares, closed shares, and distribution files. Logging transactions, on the other hand, refers to maintaining before and after images of files during disk writes. This can prevent data corruption if power fails or you reboot while Capital Gainz is writing to disk. The I/O required to maintain these logs significantly impairs the performance of Capital Gainz. In fact, this feature is now inactive. If you need the extra level of security, simply backup your data files before and after running Capital Gainz. You can even change CG.BAT to automatically backup on start up. 28) 'Why does the initial screen say that I'm running a shareware version when I execute Capital Gainz from a different directory?' 'Why does Capital Gainz report that no Help is available when I execute it from a different directory?' Capital Gainz reads the CAPGNZ.INF file to get registration information. If you execute Capital Gainz from a different directory by specifying a pathname, this file will not be found. If you do this regularly, copy CAPGNZ.INF to the directory you're in when you execute Capital Gainz. Capital Gainz retrieves the Help screens from CAPGNZ.HLP, which also must be in the directory you're in when you execute Capital Gainz. 29) No longer applies. 30) 'Can I secure my data from other people who use my computer?' There is no built-in method to secure data, but programs do exist that let you password protect your computer and data. If you want to hide your data from others, copy the data files to diskette and delete the data files from your hard drive. If you just want to prevent your kids from deleting files, you can make your data files 'hidden' with the DOS ATTRIB command. If you do this, you may want to create one batch file to 'hide' them, and another batch file to 'unhide' them. This is far from foolproof - but at least hidden files can't be copied or deleted. The Capital Gainz program still recognizes hidden data files, but the BACKUP command does not. 31) 'Why aren't the shares purchased with reinvested dividends shown with the distributions?' Shares purchased by reinvesting distributions are not associated with the distributions. The distribution and the share purchase are recorded separately. The reinvestment feature of Capital Gainz simplifies this two-step process. Capital Gainz Users Manual 58 32) "Why does Capital Gainz halt with an error of 'Insufficient Memory'?" Capital Gainz requires about 512KB of free memory to run. If your drivers and TSRs consume too much conventional memory, then there's not enough memory for Capital Gainz to run. See Chapter 21 for details on how to alleviate this problem. 33) "Why does Capital Gainz halt with an error of 'Invalid Record Declaration'?" You are trying to execute Capital Gainz against data files created with a different version of Capital Gainz. You probably need to upgrade your data files with the Utility Program. Capital Gainz Users Manual 59 Capital Gainz Users Manual 60 Chapter 6 - Programs and Files Capital Gainz includes several executable and documentation files, and creates data files when executed. This chapter briefly describes each file. 6.1 Executable Files o CG.BAT: This is the startup batch file for Capital Gainz created at installation. It changes to the Capital Gainz program directory specified at installation, deletes any temporary files, sets up the temporary directory, and then executes CAPGNZ.EXE. During installation, you can choose to copy this to your root directory. You may want to change CG.BAT, such as adding a line to backup your data files before executing CAPGNZ.EXE. If you reinstall Capital Gainz, any existing CG.BAT is renamed CAPGNZ.SAV. o CAPGNZ.EXE: This is the main executable file for Capital Gainz. It's very large, and contains numerous overlays to fit into limited DOS conventional memory. This is the last command executed by CG.BAT. o CAPGNZBU.BAT: This is a simple backup batch file. You are welcome to change it as needed. For instance, if your data files are too large to fit on one diskette, you may want to compress them with PKZIP. This can be done by modifying this file. CAPGNZBU.BAT is the default command executed by the Backup option on the Capital Gainz Main Menu. You can specify a different command in the User Settings Form. o CAPGNZRS.BAT: This is a simple restore batch file. It does the opposite of CAPGNZBU.BAT, as it copies data files from diskette. If you change CAPGNZBU.BAT, you should make analogous changes to CAPGNZRS.BAT. For instance, if you use PKZIP to compress your files in CAPGNZBU.BAT, then use PKUNZIP to decompress them in CAPGNZRS.BAT. CAPGNZRS.BAT is not executed by Capital Gainz. o CAPGNZSH.COM: This is a small 'shell' file used when you go to DOS from within Capital Gainz. It saves the current directory, modifies the command prompt, and then runs the command interpreter specified in your COMSPEC environment variable. On exit, it resets your prompt, goes back to the original directory, and returns to Capital Gainz. While you are in DOS, Capital Gainz is saved in a temporary image file. If you specify a RAM drive for your temporary directory in the INSTALL program, then the process of going to DOS is much faster. This is because the Capital Gainz image is maintained in Capital Gainz Users Manual 61 memory instead of on disk. o CGUTIL.EXE: This is the Capital Gainz Utility Program, which lets you upgrade files from previous versions, copy/move securities, copy/move portfolios, and import/export files. It is only included with the registered version of Capital Gainz. CGUTIL is kept in a compressed state, and decompresses into memory when you execute it. This feature lets you keep CGUTIL.EXE on a diskette and use it as needed, instead of giving up hard disk space for it. See Chapter 17 for a full description of CGUTIL.EXE. o DP.EXE: This is the DoublePrint utility, which gives you some handy printing features. The main uses include printing 2 pages per sheet on a laser printer, or printing a selected range of page numbers. You are free to use DP.EXE for other printing needs. If you use DP.EXE regularly, you probably will want to move it to a directory on your DOS PATH for convenient access. For a full list of DP.EXE's features, type DP ?. o INSTALL.EXE: This is the Capital Gainz installation program. It does not get copied off the program disk. 6.2 Data Files 6.2.1 Program Data Files The following files contain data used exclusively by Capital Gainz. o CAPGNZ.HLP: This is the online help file, accessed via the F1 function key. It must be located in the directory where you execute CAPGNZ.EXE. o CAPGNZ.INF: This file is created at installation, and contains information for CAPGNZ.EXE. This information includes the revision number and the directory for temporary files. It must be located in the directory where you execute CAPGNZ.EXE. o CAPGNZ.IX: This is the users manual index used by Capital Gainz when you view the online users manual. This index allows you to jump to specific pages very quickly. CAPGNZ.IX is created when you install the Capital Gainz documentation. Capital Gainz Users Manual 62 6.2.2 User Data Files The following Capital Gainz files contain user data, and are created when you run Capital Gainz. The components of these files are discussed in detail beginning on page 16. o PORT.DAT, PORT.K01: the portfolio data and index files. o GSEC.DAT, GSEC.K01: the global security data and index files. o BROKER.DAT, BROKER.K01: the broker/investment company data and index files. o PRC_HST.DAT, PRC_HST.K01: the price history data and index files. o SETTINGS.DAT: the user settings data file. For the following files, the 'nnn' corresponds to the portfolio ID. Thus, the files associated with the first portfolio are LSEC001, OPEN001, CLOSE001, and DISTR001. o LSECnnn.DAT, LSECnnn.K01: the local security data and index files. o OPENnnn.DAT, OPENnnn.K01: the open shares data and index files. o CLOSEnnn.DAT, CLOSEnnn.K01: the closed shares data and index files. o DISTRnnn.DAT, DISTRnnn.K01: the distribution data and index files. 6.2.3 Temporary Files Capital Gainz creates and uses the following temporary files: o $*.TMP: this file (the '*' is a DOS wildcard) is created when you shell to DOS, and contains the Capital Gainz program image to restore when you enter EXIT on the DOS command line. If you turn off the machine without exiting back to Capital Gainz, this file will be cleaned up the next time you start Capital Gainz. Or, you can simply delete it. This file is created in the temporary directory, if you specified one at installation, or the Capital Gainz program directory. o CAPGNZ.TX, PORT.LOG, GSEC.LOG, BROKER.LOG, PRC_HST.LOG, LSECnnn.LOG, OPENnnn.LOG, CLOSEnnn.LOG, DISTRnnn.LOG: these files contain transaction tracking information. They will only show up if you have Transaction Logging turned on. If Capital Gainz aborts, the next time you run it the transactions in these files will be rolled back. You should not delete these files - if you do, make Capital Gainz Users Manual 63 sure to delete all of them, as Capital Gainz may not be able to execute otherwise. o CGPRT.TMP: this is a temporary file used for appending reports. Deleting it does not affect Capital Gainz, as it's emptied and reused for each report. On startup, Capital Gainz deletes it. o CGSCR.TMP: this is a temporary file used for viewing reports. Deleting it does not affect Capital Gainz, as it's emptied and reused for each report. On startup, Capital Gainz deletes it. 6.3 Documentation Files o CAPGNZ.DOC: This is the online users manual. There are no illustrations in the online version. If you want to view the manual online, you need to install it with the INSTALL program. Don't simply copy it or unarchive it from the diskette to the Capital Gainz program directory, as you won't have CAPGNZ.IX generated, making jumping to specific pages very slow. o HISTORY.DOC: This file contains a list of fixes, modifications, and changes to Capital Gainz, broken down by version number. o LICENSE.DOC: This is the Capital Gainz license statement. It specifies what you are legally entitled to do with Capital Gainz. It also specifies what rights and benefits you receive with registration. o OMB.ASP: This is the ASP Ombudsman statement, which tells you what you should expect from us. It gives you a way to resolve differences via the Association of Shareware Professionals. o README.DOC: This file contains quick help on getting started and new information not in the users manual. Capital Gainz Users Manual 64 Part II: The Program Details Chapter 7 - Main Menu [[Screen not in online version.]] The Main Menu is divided into two sections, with the first section listed underneath the current portfolio, and the second section listed under 'Global Operations'. The first section includes the following options: o Activity - go to the Activity Menu, to buy shares, sell shares, and record distributions. o Security - go to the Local Security Table, to view, add, change, or delete local securities. o Log Maintenance - go to the Log Maintenance Menu, to view, add, change, or delete open shares records, closed shares records, or distribution records. The second section offers the following: o Portfolio - go to the Portfolio Table, to view, add, change, delete, or open portfolios. o Global Security - go to the Global Security Table, to view, add, change, or delete global securities. o Broker/Investment Company - go to the Broker/Investment Company Table, to view, add, change, or delete broker/investment companies. o Reports - to print reports. o User Settings - go to the User Settings Form to change your preferred settings. o View Documentation - view the Capital Gainz documentation files. o Exit - exit from Capital Gainz. Function keys at the bottom of the screen are: o F2:Backup - execute the Backup command defined in the User Settings Form. o F10:DOS - suspend Capital Gainz and invoke the DOS Shell. Capital Gainz Users Manual 65 Unlike other menus and forms, the ESC key will not exit you out of the Main Menu. You must explicitly choose the Exit function to end Capital Gainz. Capital Gainz Users Manual 66 Chapter 8 - Activity [[Screen not in online version.]] 'Activity' in Capital Gainz refers to buying shares, selling shares, or recording distributions. You reach the Activity Menu by selecting Activity on the Main Menu. From the Activity Menu, you can: o Buy Shares - record purchases. o Sell Shares - record sales. o Record Distributions - record distributions. Function keys at the bottom of the screen are: o ESC - quit the Activity Menu, and return to the Main Menu. o F10:DOS - suspend Capital Gainz and invoke the DOS Shell. Capital Gainz Users Manual 67 8.1 Buy Shares [[Screen not in online version.]] To record a share purchase, you fill in the Buy Shares Form. This form displays the last entered symbol and the current or last entered date, then accepts: o (Required) The symbol of the local security to purchase. If you leave this entry blank or enter an invalid symbol, the Local Security Lookup Table, described below, pops up. After you enter a valid symbol, the security's name, current price, and current number of open shares are displayed. If you have any outstanding short sales for this local security, Capital Gainz will cycle through them, from oldest to most recent, and ask if you want to cover the short sale. If you answer YES to cover one, the number of shares field is set to the shorted number. o (Required) The date of the purchase. If the displayed date is correct, just hit the ENTER key. If you want a different date, just enter it over the displayed date. o (Required/Calculated) The number of shares bought. This entry is multiplied by the displayed price, and the result is displayed as the purchase amount. You can leave this entry blank, and let Capital Gainz calculate it using the price and amount entries. o (Required/Calculated) The purchase price for the security. This is the actual price, not including any commissions. You can accept the displayed current price by hitting ENTER, or enter a different price. If all you have is a fractional figure, use the Fraction-To- Decimal Table displayed to convert it to a decimal value. On exiting this field, the amount field is updated to reflect the number of entered shares multiplied by the entered price. You can leave this entry blank, and let Capital Gainz calculate it using the number of shares and amount entries. o (Required/Calculated) The amount of the purchase, not including any commissions. If you entered the number of shares and price, the calculated and displayed value is usually correct and you can just hit ENTER. However, because of rounding, you may need to enter a different amount. You must enter at least two of: number of shares, price, amount (unless you turn off automatic calculations). o (Optional) The commission or load charged on the purchase. o (Optional) Twenty characters of notes about the purchase, so you Capital Gainz Users Manual 68 can enter information such as 'DIV REINVEST' or 'IRA ROLLOVER'. If the values that you let Capital Gainz calculate are consistently incorrect, make sure that you have correctly set the precision values for the local security. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the open shares record. This is a short-cut key, since you can get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Activity Menu. This is a short-cut key, since you can get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. o F3:Sell Shares - exit immediately, and bring up the Sell Shares Form. This is a short-cut key, since you can get the same result by exiting from the form and choosing the Sell Shares option on the Activity Menu. o F4:Distributions - exit immediately, and bring up the Record Distributions Form. This is a short-cut key, since you can get the same result by exiting from the form and choosing the Distributions option on the Activity Menu. o F5:Calc On/Calc Off - turns off automatic calculations. If you turn off calculations, you can enter 0 for the amount. After completing the form, the open shares record is written to disk. Most of the field values stay the same, and the cursor goes back to the Symbol field. In other words, this form is repeatedly accepted until you explicitly exit from it. To remind you how many purchases you've recorded in the current session, a counter is displayed in the upper righthand corner of the form. A price history entry may or may not be added based on the entered price and date. See the page 108 for detailed information on conditions for adding a record to the Price History File. Chapter 10 discusses changing and deleting open shares records. 8.1.1 Fraction-to-Decimal [[Screen not in online version.]] The Fraction-to-Decimal Table displays decimal equivalents for Capital Gainz Users Manual 69 fractions. This table is always displayed with the Buy Shares and Sell Shares Forms. 8.1.2 Local Security Lookup [[Screen not in online version.]] The Local Security Lookup Table is brought up if you enter an invalid security symbol. For each local security in the current portfolio, this table shows the symbol, name, number of open shares, and last buy, sell, and distribution dates. This table is displayed instead of the Local Security Table, which only shows four securities at a time and is somewhat slower due to the calculations performed. If you entered an invalid security symbol, the cursor is positioned on the security symbol that best matches the entered symbol. Function keys at the bottom of the screen are: o ENTER:Select - select the highlighted local security, inserting its symbol into the form's symbol field. o INS:Add - define a new local security. o F2:Change - change the highlighted local security. o DEL:Delete - delete the highlighted local security. o ESC:Exit - leave the table without selecting a local security. See Chapter 9 for details on adding, changing, and deleting local securities. 8.1.3 Examples Several examples of purchases are given below. These examples use the following scenario. A mutual fund charges a 2% commission and you make the following purchases: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 2) 2/01/90 9.0909 5.5000 50.00 1.00 3) 3/01/90 10.5263 4.7500 50.00 1.00 Also, we'll assume that the long term holding period is 365 days, or one year. In these examples, we'll use 1/15/91 as the current date, and a price of $6.00 on that date. Capital Gainz Users Manual 70 Notice in these examples how the purchase commission is factored into the gain/loss calculations. Also, the total gain or loss is caluclated by multiplying the total number of shares by the current price and subtracting the total basis. Due to rounding, summing the gain or loss of individual records may not be the same. More details on the calculations employed by Capital Gainz are given in Chapter 18. 8.1.3.1 Non-Category Selling Methods If the local security does not use the Single or Double Category selling method, then the three open shares records have the following current gains: (open_shares * current_price) - open_amount - open_commission 1) (10.0000 * 6.00) - 50.00 - 1.00 = 9.00 (Long Term) 2) ( 9.0909 * 6.00) - 50.00 - 1.00 = 3.55 (Short Term) 3) (10.5263 * 6.00) - 50.00 - 1.00 = 12.16 (Short Term) ─────────────────── 24.70 (Total) These work out to percentage gains of: 1) ( 9.00/ 50.00) * 100 = 18.00% (Long Term) 2) ( 3.55/ 50.00) * 100 = 7.10% (Short Term) 3) (12.16/ 50.00) * 100 = 24.32% (Short Term) ────────────────────────────────────────── (24.70/150.00) * 100 = 16.47% (Total) If you included commissions in the basis, then the percentage gains would be: 1) ( 9.00/ 51.00) * 100 = 17.65% (Long Term) 2) ( 3.55/ 51.00) * 100 = 6.96% (Short Term) 3) (12.16/ 51.00) * 100 = 23.84% (Short Term) ────────────────────────────────────────── (24.70/153.00) * 100 = 16.14% (Total) 8.1.3.2 Single Category Selling Method If the local security uses the Single Category selling method, then the total open shares, open amount, and open commission maintained in the security's Local Security File record are 29.6172, 150.00, and 3.00. Thus, the basis price is: basis_amount/open_shares = 150.00/29.6172 = 5.0646 Capital Gainz Users Manual 71 The open shares records are therefore treated as: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0646 50.65 1.00 2) 2/01/90 9.0909 5.0646 46.04 1.00 3) 3/01/90 10.5263 5.0646 53.31 1.00 As you can see, the purchase amounts still add up to $150.00, but the prices and amounts have been changed to reflect the average purchase price. The three open shares records have the following current gains: (open_shares * current_price) - basis_amount - open_commission 1) (10.0000 * 6.00) - 50.65 - 1.00 = 8.35 (Long Term) 2) ( 9.0909 * 6.00) - 46.04 - 1.00 = 7.51 (Short Term) 3) (10.5263 * 6.00) - 53.31 - 1.00 = 8.85 (Short Term) ─────────────────── 24.70 (Total) These work out to percentage gains of: 1) ( 8.35/ 50.65) * 100 = 16.49% (Long Term) 2) ( 7.51/ 46.04) * 100 = 16.31% (Short Term) 3) ( 8.85/ 53.31) * 100 = 16.60% (Short Term) ────────────────────────────────────────── (24.70/150.00) * 100 = 16.47% (Total) If you included commissions in the basis, then the percentage gains would be: 1) ( 8.35/ 51.65) * 100 = 16.17% (Long Term) 2) ( 7.51/ 47.04) * 100 = 15.97% (Short Term) 3) ( 8.85/ 54.31) * 100 = 16.30% (Short Term) ────────────────────────────────────────── (24.70/153.00) * 100 = 16.14% (Total) 8.1.3.3 Double Category Selling Method If the local security uses the Double Category selling method, then the total open shares, open amount, and open commission maintained in the security's Local Security File record are 29.6172, 150.00, and 3.00. The short term open shares, open amount, and open commission, also maintained in the Security File record, are 19.6172, 100, and 2.00. Thus, the short term basis price is: Capital Gainz Users Manual 72 short_term_basis_amount/short_term_open_shares = 100.00/19.6172 = 5.0976 The long term basis price is: (total_basis_amount - short_term_basis_amount)/ (total_open_shares - short_term_open_shares) = (150.00 - 100.00)/(29.6172 - 19.6172) = 5.0000 The open shares records are therefore treated as: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 2) 2/01/90 9.0909 5.0976 46.34 1.00 3) 3/01/90 10.5263 5.0976 53.66 1.00 As you can see, the purchase amounts still add up to $150.00, but the prices and amounts have been changed to reflect the average purchase price for the long term and short term categories. The three open shares records have the following current gains: (open_shares * current_price) - basis_amount - open_commission 1) (10.0000 * 6.00) - 50.00 - 1.00 = 9.00 (Long Term) 2) ( 9.0909 * 6.00) - 46.34 - 1.00 = 7.21 (Short Term) 3) (10.5263 * 6.00) - 53.66 - 1.00 = 8.50 (Short Term) ────────────────── 24.70 (Total) These work out to percentage gains of: 1) ( 9.00/ 50.00) * 100 = 18.00% (Long Term) 2) ( 7.21/ 46.34) * 100 = 15.56% (Short Term) 3) ( 8.50/ 53.66) * 100 = 15.84% (Short Term) ────────────────────────────────────────── (24.70/150.00) * 100 = 16.47% (Total) If you included commissions in the basis, then the percentage gains would be: 1) ( 9.00/ 51.00) * 100 = 17.65% (Long Term) 2) ( 7.21/ 47.34) * 100 = 15.23% (Short Term) 3) ( 8.50/ 54.66) * 100 = 15.55% (Short Term) ────────────────────────────────────────── (24.70/153.00) * 100 = 16.15% (Total) Notice that rounding caused a minor difference in the open gain, Capital Gainz Users Manual 73 compared to the other methods. This will occasionally happen with the average selling methods. Capital Gainz Users Manual 74 8.2 Sell Shares [[Screen not in online version.]] To record a sale, you fill in the Sell Shares Form. This form displays the last entered symbol and the current or last entered date, then accepts: o (Required) The symbol of the local security to sell. If you leave this entry blank or enter an invalid symbol, the Security Lookup Table, described on page 70, pops up. After you enter a valid symbol, the security's name, last selling method, current price, and number of open shares are displayed. o (Required) The date of the sale. If the displayed date is correct, just hit the ENTER key. If you want a different date, just enter it over the displayed date. o (Required) The selling method to use. These are described in detail below. The value in the local security record is displayed, but this value can usually be changed. It shouldn't be changed if you've already sold shares using the Single or Double Category Methods. o (Required/Calculated) The number of shares to sell. If you used the Specific Identity selling method, this figure is calculated based on the open shares selected to sell in the Select Shares to Sell Table. This table is described below in the discussion on the ID Sell Method. If the Double Category selling method is being used, you're asked whether to begin selling from the short term or long term shares. After the number of open shares to sell is entered or calculated, it's multiplied by the displayed price and the result is displayed as the amount. You can leave this entry blank, and let Capital Gainz calculate it using the price and amount entries. o (Required/Calculated) The selling price for the security. This is the actual price, not including any commissions. You can accept the displayed current price by hitting ENTER, or enter a different price. If all you have is a fractional figure, use the Fraction-To- Decimal Table (see page 69) displayed to convert it to a decimal value. On exiting this field, the amount field is updated to reflect the number of entered shares multiplied by the entered price. You can leave this entry blank, and let Capital Gainz calculate it using the number of shares and amount entries. o (Required/Calculated) The amount of the sale, not including any commissions. If you entered the number of shares and the price, the calculated and displayed value is usually correct and you can just Capital Gainz Users Manual 75 hit ENTER. However, because of rounding, you may need to enter a different amount. You must enter at least two of: number of shares, price, amount (unless you turn off automatic calculations). o (Optional) The commission or load charged on the sale. o (Optional) Twenty characters of notes about the sale, so you can enter information such as 'HOUSE PAYMENT' or 'TO PAY TAXES'. If the values that you let Capital Gainz calculate are consistently incorrect, make sure that you have correctly set the precision values for the local security. Function keys at the bottom of the screen are: o Form Accept - accept all entries and execute the sale. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Activity Menu. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. o F2:Buy Shares - exit immediately, and bring up the Buy Shares Form. This is a short-cut key, since you get the same result by exiting from the form and choosing the Buy Shares option on the Activity Menu. o F4:Distributions - exit immediately, and bring up the Record Distributions Form. This is a short-cut key, since you get the same result by exiting from the form and choosing the Distributions option on the Activity Menu. o F5:Calc On/Calc Off - turns off automatic calculations. If you turn off calculations, you can enter 0 for the amount. After completing the form, Capital Gainz checks if you specified a date that precedes one or more purchases. If so, the open shares are calculated as of that date, and compared to the number of shares you want to sell. Also, for category methods, the basis price is recalculated based on the selling price, using the open shares and closed shares logs. Next, a counter pops up and counts down, from the number of shares to sell to 0, as the open shares to sell are pulled from the open shares records into a temporary table. You are then asked if you want to view or print the information for the sale. [[Screen not in online version.]] Capital Gainz Users Manual 76 The Open Information for Shares Sold Report shows the symbol, name, and selling price. For the affected open shares, you're shown: o Purchase date. o Open shares. o Basis price, which is the same as the purchase price if you didn't use a category selling method. o Basis amount, which is the same as the purchase amount if you didn't use a category selling method. o Purchase commission or load. o Gain/loss from the entered sale. The Shares, Amount, Commission, and Gain/Loss columns are totalled for the sale. Also, the average basis price is displayed. After viewing or printing the Open Information for Shares Sold Report, you are given the choice of confirming or canceling the sale. If you confirm the sale, a counter pops up and counts from 0 to the number of shares to sell as the affected open shares records are closed. Notice that a single sale creates one or more closed shares records, corresponding to each related open shares record. If you specified a selling commission, it's assigned proportionally to each closed shares record created. The affected open shares records are deleted or modified, depending on whether you sold all or only some of the record's open shares. Following confirmation of the sale: If you specified YES for the Redistribute Proceeds option in the User Settings Form: you are asked if you want to redirect the proceeds from the sale. If you answer YES, then you are taken to the Buy Shares Form, now labeled Redirect Proceeds. Since you will probably invest in a different security, you must accept the symbol on the Buy Form. After accepting the local security symbol, the rest of the values are filled in. You will probably need to change the purchase price. For more information on buying shares, see the section on the Buy Shares Form. After completing the Buy Shares Form, the redistribution is complete and you return to the Sell Shares Form. When you return to the Sell Shares Form, most of the field values stay the same, and the cursor goes back to the Symbol field. In other words, this form is repeatedly accepted until you explicitly exit from it. To remind you how many sales you've recorded in the current Capital Gainz Users Manual 77 session, a counter is displayed in the upper righthand corner of the form. A price history entry may or may not be added based on the entered price and date. See page 108 for detailed information on conditions for adding a record to the Price History File. Chapter 10 discusses changing and deleting closed shares records. 8.2.1 Selling Methods [[Screen not in online version.]] The Sell Method Lookup Table is brought up if you enter an invalid selling method, or leave it blank. Hitting ENTER selects the highlighted selling method. The available selling methods are first-in/first-out (FIFO), last- in/first-out (LIFO), maximize gains/minimize losses (MAX), minimize gains/maximize losses (MIN), identification (ID), single category average price (SCAT), double category average price (DCAT), short (SHRT), and return of principal (PRIN). See Chapter 19 for detailed information and tax-related considerations. 8.2.1.1 First-In/First-Out (FIFO) Sell Method The first-in/first-out (FIFO) selling method sells the entered number of shares beginning with the oldest open shares. The open shares records are scanned from oldest to most recent. 8.2.1.2 Last-In/First-Out (LIFO) Sell Method The last-in/first-out (LIFO) selling method sells the entered number of shares beginning with the most recent open shares. The open shares records are scanned from the sell date to the oldest. 8.2.1.3 Maximum Gain/Minimum Loss (MAX) Sell Method The maximum gain/minimum (MAX) loss selling method sells the entered number of shares using the open shares with the lowest purchase prices. All open shares records up to the sell date are scanned. 8.2.1.4 Minimum Gain/Maximum Loss (MIN) Sell Method The minimum gain/maximum loss (MIN) selling method sells the entered number of shares using the open shares with the highest purchase prices. All open shares records up to the sell date are scanned. Capital Gainz Users Manual 78 8.2.1.5 Specific Identity (ID) Sell Method The specific identity (ID) selling method allows you to select open shares to sell from a table listing the oldest up to the sell date, and set the number of shares to be sold to the number of open shares selected. [[Screen not in online version.]] The Select Open Shares to Sell Table shows a list of open shares, sorted in ascending purchase date order. Shown for each purchase are: o The purchase date. o The purchase price. o The number of open shares currently selected to sell. o The number of open shares that would remain after the sale. You select an entry in the list by highlighting it and hitting the ENTER key, calling up the Enter Shares Form for you to enter the number of shares to sell. [[Screen not in online version.]] This form shows the number of shares for the purchase, and you enter the number of shares to sell from that particular purchase. If you haven't already chosen to sell some shares from that purchase, then the Shares to Sell field is set to the number of open shares in the purchase. Upon completion, the Select Shares to Sell Table is updated to reflect the change. 8.2.1.6 Single Category (SCAT) Sell Method The single category (SCAT) selling method uses the average price as of the sell date as the basis, and sells the entered number of shares beginning with the oldest shares. This method is only valid for mutual funds, and shouldn't be changed later. Chapter 19 discusses the average, or category, methods in detail. 8.2.1.7 Double Category (DCAT) Sell Method The double category (DCAT) selling method divides the open shares into short term and long term categories, and uses the average price in each category as of the sell date. This method is only valid for mutual funds and shouldn't be changed later. [[Screen not in online version.]] The Sell From Double Category Form pops up after entering the Capital Gainz Users Manual 79 number of shares to sell on the Sell Shares Form if you use the Double Category selling method. You can choose to begin selling shares from the long term or the short term category. If the number of shares in the chosen category is less than the total number of shares to sell, the excess shares to sell will be taken from the other category. The oldest shares in each category are sold first. Chapter 19 discusses the average, or category, methods in detail. 8.2.1.8 Short (SHRT) Sell Method You use the short sale (SHRT) selling method to sell shares of a security that you don't currently own. When selling short, you hope to buy the shares back at a profit before the trade settlement date. Capital Gainz creates a single closed shares record for the short sale, with no associated open shares information. Then, when you record purchases against the security sold short, Capital Gainz will ask if you want the purchase to cover the short sale. 8.2.1.9 Return of Principal (PRIN) Sell Method A return of principal could be thought of as a distribution. However, it exhibits the characteristics of a sale since it reduces your open basis. Return of principal is generally associated with Unit Trusts or Partnerships, where you receive non-taxable returns of capital until the initial investment has been depleted. In Capital Gainz, Return of Principal is recorded as a sale of 0 shares, reducing your basis by the selling amount. If you try to record a return of principal amount greater than your remaining basis, Capital Gainz returns an error. After exhausting the basis, future distributions should be classified as long term or short term capital gains. You can determine the remaining basis from the basis of the current open shares. You can record a return of principal from the Sell Shares Form or the Distribution Form. On the Sell Shares form, you choose the PRIN selling method. 8.2.2 Examples Examples for each selling method are given below. These examples, except for the short selling and return of principal examples, use the following scenario. A mutual fund charges a 2% commission and you make the following purchases: Capital Gainz Users Manual 80 # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 2) 2/01/90 9.0909 5.5000 50.00 1.00 3) 3/01/90 10.5263 4.7500 50.00 1.00 In these examples, we assume you sold 15 shares at $6.00 per share on 1/15/91. For illustration, let's say the fund also charges a 1% selling commission, which comes out to (15 * 6.00 * .01) = .90. Also, we'll assume that the long term holding period global is set to 365 days (one year). A few important points to notice in these examples: o The selling commission is applied proportionally to each closed shares record created. If separate 60 and 40 share purchases are combined into one sale with a $35 commission, the two closed shares records created have selling commissions of $21 (60/100 * 35) and $14 (40/100 * 35). o Both the purchase and selling commissions are factored into the gain/loss calculations, but not included in the basis amount for the gain/loss calculation unless you have specified to include commissions in the basis in the User Settings Form. o When some of an open shares record's shares are sold, the purchase commission is applied proportionally. If you sell 50 shares from a 100 share purchase with a $35 purchase commission, only $17.50 (50/100 * 35) of the purchase commission is moved to the closed shares record. Since I don't show any of the notes in these examples, here's what happens to them: o Any selling notes specified are included in all of the closed shares records created. o Any purchase notes are gone when all of the open shares in the record are sold. Details on the calculations employed by Capital Gainz are given in Chapter 18. 8.2.2.1 First-In/First-Out (FIFO) Selling Method Selling 15 shares using the First-In/First-Out selling method results in the creation of the following closed shares records (the '#' column corresponds to the open shares records): Capital Gainz Users Manual 81 # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 1) 1/15/91 10.0000 6.0000 60.00 0.60 1/01/90 50.00 1.00 2) 1/15/91 5.0000 6.0000 30.00 0.30 2/01/90 27.50 0.55 The open basis for the first record is simply the open amount from the first open shares record. The open basis for the next record is derived by multiplying the number of shares sold by the purchase price of the second open shares record: (15.0000 - 10.0000) * 5.50 = 27.50 These two closed shares records' gains are calculated with: sold_amount - basis_amount - sold_commission - open_commission 1) 60.00 - 50.00 - 0.60 - 1.00 = 8.40 (Long Term) 2) 30.00 - 27.50 - 0.30 - 0.55 = 1.65 (Short Term) ────────────────── 10.05 (Total) These work out to percentage gains of: 1) ( 8.40/50.00) * 100 = 16.80% (Long Term) 2) ( 1.65/27.50) * 100 = 6.00% (Short Term) ───────────────────────────────────────── (10.05/77.50) * 100 = 12.97% (Total) If you included commissions in the basis, then the percentage gains would be: 1) ( 8.40/51.60) * 100 = 16.28% (Long Term) 2) ( 1.65/28.35) * 100 = 5.82% (Short Term) ───────────────────────────────────────── (10.05/79.95) * 100 = 12.57% (Total) The open shares records remaining after selling the 15 shares are: # Date Shares Price Amount Open Bought Commission 2) 2/01/90 4.0909 5.5000 22.50 0.45 3) 3/01/90 10.5263 4.7500 50.00 1.00 The first record was removed, since all of the open shares were sold. The second open shares record was changed to reflect the sale of 5.0000 shares. Capital Gainz Users Manual 82 8.2.2.2 Last-In/First-Out (LIFO) Selling Method Selling 15 shares using the Last-In/First-Out selling method results in the creation of the following closed shares records (the '#' column corresponds to the open shares records): # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 3) 1/15/91 10.5263 6.0000 63.16 0.63 3/01/90 50.00 1.00 2) 1/15/91 4.4737 6.0000 26.84 0.27 2/01/90 24.61 0.49 The open basis for the first record is simply the open amount of the third open shares record. The open basis for the second record is derived by multiplying the number of shares sold by the purchase price of the second open shares record: (15.0000 - 10.5263) * 5.50 = 24.61 These two closed shares records' gains are calculated with: sold_amount - basis_amount - sold_commission - open_commission 3) 63.16 - 50.00 - 0.63 - 1.00 = 11.53 (Short Term) 2) 26.84 - 24.61 - 0.27 - 0.49 = 1.47 (Short Term) ────────────────── 13.00 (Total) These work out to percentage gains of: 3) (11.53/50.00) * 100 = 23.06% (Short Term) 2) ( 1.47/24.61) * 100 = 5.97% (Short Term) ───────────────────────────────────────── (13.00/74.61) * 100 = 17.42% (Total) If you included commissions in the basis, then the percentage gains would be: 3) (11.53/51.63) * 100 = 22.33% (Short Term) 2) ( 1.47/25.37) * 100 = 5.79% (Short Term) ───────────────────────────────────────── (13.00/78.00) * 100 = 16.88% (Total) The open shares records remaining after selling the 15 shares are: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 2) 2/01/90 4.6172 5.5000 25.39 0.51 The third record was removed, since all of the open shares were sold. Capital Gainz Users Manual 83 The second open shares record was changed to reflect the sale of 4.4737 shares. 8.2.2.3 Maximum Gain/Minimum Loss (MAX) Selling Method Selling 15 shares using the Maximum Gain/Minimum Loss selling method results in the creation of the following closed shares records (the '#' column corresponds to the open shares records): # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 3) 1/15/91 10.5263 6.0000 63.16 0.63 3/01/90 50.00 1.00 1) 1/15/91 4.4737 6.0000 26.84 0.27 1/01/90 22.37 0.45 The open basis for the first record is simply the open amount of the third open shares record. The open basis for the next record is derived by multiplying the number of shares sold by the purchase price of the first open shares record: (15.0000 - 10.5263) * 5.00 = 22.37 These two closed shares records' gains are calculated with: sold_amount - basis_amount - sold_commission - open_commission 3) 63.16 - 50.00 - 0.63 - 1.00 = 11.53 (Short Term) 1) 26.84 - 22.37 - 0.27 - 0.45 = 3.75 (Long Term) ────────────────── 15.28 (Total) These work out to percentage gains of: 3) (11.53/50.00) * 100 = 23.06% (Short Term) 1) ( 3.75/22.37) * 100 = 16.76% (Long Term) ───────────────────────────────────────── (15.28/72.37) * 100 = 21.11% (Total) If you included commissions in the basis, then the percentage gains would be: 3) (11.53/51.63) * 100 = 22.33% (Short Term) 1) ( 3.75/23.09) * 100 = 16.24% (Long Term) ───────────────────────────────────────── (15.28/74.72) * 100 = 20.45% (Total) The open shares records remaining after selling the 15 shares are: Capital Gainz Users Manual 84 # Date Shares Price Amount Open Bought Commission 1) 1/01/90 5.5263 5.0000 27.63 0.55 2) 2/01/90 9.0909 5.5000 50.00 1.00 The third record was removed, since all of the open shares were sold. The first open shares record was changed to reflect the sale of 4.4737 shares. Note that the Maximum Gain/Minimum Loss selling method bases its decision-making on the purchase price only, and does not consider open commissions. However, open commissions would rarely make a difference anyway. 8.2.2.4 Maximum Loss/Minimum Gain (MIN) Selling Method Selling 15 shares using the Maximum Loss/Minimum Gain selling method results in the creation of the following closed shares records (the '#' column corresponds to the open shares records): # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 2) 1/15/91 9.0909 6.0000 54.55 0.55 2/01/90 50.00 1.00 1) 1/15/91 5.9091 6.0000 35.45 0.35 1/01/90 29.55 0.59 The open basis for the first record is simply the open amount of the second open shares record. The open basis for the next record is derived by multiplying the number of shares sold by the purchase price of the first open shares record: (15.0000 - 9.0909) * 5.00 = 29.55 These two closed shares records' gains are calculated with: sold_amount - basis_amount - sold_commission - open_commission 2) 54.55 - 50.00 - 0.55 - 1.00 = 3.00 (Short Term) 1) 35.45 - 29.55 - 0.35 - 0.59 = 4.96 (Long Term) ───────────────── 7.96 (Total) These work out to percentage gains of: 2) ( 3.00/50.00) * 100 = 6.00% (Short Term) 1) ( 4.96/29.55) * 100 = 16.79% (Long Term) ───────────────────────────────────────── ( 7.96/79.55) * 100 = 10.01% (Total) If you included commissions in the basis, then the percentage gains would be: Capital Gainz Users Manual 85 2) ( 3.00/51.55) * 100 = 5.82% (Short Term) 1) ( 4.96/30.49) * 100 = 16.27% (Long Term) ───────────────────────────────────────── ( 7.96/82.04) * 100 = 9.70% (Total) The open shares records remaining after selling the 15 shares are: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 4.0909 5.0000 20.45 0.41 3) 3/01/90 10.5263 4.7500 50.00 1.00 The second record was removed, since all of the open shares were sold. The first open shares record was changed to reflect the sale of 5.9091 shares. Note that the Maximum Loss/Minimum Gain selling method bases its decision-making on the purchase price only, and does not consider open commissions. However, open commissions would rarely make a difference anyway. 8.2.2.5 Single Category (SCAT) Selling Method Using the example purchases, the total open shares, open amount, and open commission, maintained in the Security File record, are 29.6172, 150.00, and 3.00. Thus, the basis price for a sale using the Single Category selling method is: open_amount/open_shares = 150.00/29.6172 = 5.0646 The open shares records are therefore treated as: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0646 50.65 1.00 2) 2/01/90 9.0909 5.0646 46.04 1.00 3) 3/01/90 10.5263 5.0646 53.31 1.00 As you can see, the purchase amounts still add up to $150.00, but the individual prices and amounts have been changed to reflect the average purchase price. Selling 15 shares using the Single Category selling method results in the creation of the following closed shares records (the '#' column corresponds to the open shares records): Capital Gainz Users Manual 86 # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 1) 1/15/91 10.0000 6.0000 60.00 0.60 1/01/90 50.65 1.00 2) 1/15/91 5.0000 6.0000 30.00 0.30 2/01/90 25.32 0.55 Both the basis amount and actual purchase amount for the open shares are stored in the closed shares records. However, only the actual purchase price is stored in the closed shares record. Thus, when reports show the basis amount and price for a sale, the basis price is calculated from the basis amount and number of shares, and rounding may slightly change the basis price. The open basis for the first record is simply the basis amount for the first open shares record, obtained from: 10.0000 * 5.0646 = 50.65 The open basis for the next record is derived by multiplying the number of shares sold by the basis price of the second open shares record: (15.0000 - 10.0000) * 5.0646 = 25.32 These two closed shares records' gains are calculated with: sold_amount - basis_amount - sold_commission - open_commission 1) 60.00 - 50.65 - 0.60 - 1.00 = 7.75 (Long Term) 2) 30.00 - 25.32 - 0.30 - 0.55 = 3.83 (Short Term) ────────────────── 11.58 (Total) These work out to percentage gains of: 1) ( 7.75/50.65) * 100 = 15.30% (Long Term) 2) ( 3.83/25.32) * 100 = 15.13% (Short Term) ───────────────────────────────────────── (11.58/75.97) * 100 = 15.24% (Total) If you included commissions in the basis, then the percentage gains would be: 1) ( 7.75/52.25) * 100 = 14.83% (Long Term) 2) ( 3.83/26.17) * 100 = 14.64% (Short Term) ───────────────────────────────────────── (11.58/78.42) * 100 = 14.77% (Total) The open shares records remaining after selling the 15 shares are: Capital Gainz Users Manual 87 # Date Shares Price Amount Open Bought Commission 2) 2/01/90 4.0909 5.5000 22.50 0.45 3) 3/01/90 10.5263 4.7500 50.00 1.00 The first record was removed, since all of the open shares were sold. The second open shares record was changed to reflect the sale of 5.0000 shares, and the original shares/price relationship was preserved. The Local Security File record for this security contains these values: total open shares : 14.6172 total open amount : 74.03 total open commission: 1.45 As you can see, the important values are maintained in the Local Security File. In essence, the open shares are treated as: # Date Shares Price Amount Open Bought Commission 2) 2/01/90 4.0909 5.0646 20.72 0.45 3) 3/01/90 10.5263 5.0646 53.31 1.00 8.2.2.6 Double Category (DCAT) Selling Method Using the example purchases, the total open shares, open amount, and open commission, maintained in the Local Security File record, are 29.6172, 150.00, and 3.00. The short term open shares, open amount, and open commission, also maintained in the Local Security File record, are 19.6172, 100, and 2.00. Thus, the short term basis price for a sale using the Double Category selling method is: short_term_open_amount/short_term_open_shares = 100.00/19.6172 = 5.0976 The long term basis price is: (total_open_amount - short_term_open_amount)/ (total_open_shares - short_term_open_shares) = (150.00 - 100.00)/(29.6172 - 19.6172) = 5.0000 The open shares records are therefore treated as: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 2) 2/01/90 9.0909 5.0976 46.34 1.00 3) 3/01/90 10.5263 5.0976 53.66 1.00 As you can see, the purchase amounts still add up to $150.00, but the individual prices and amounts have been changed to reflect the average Capital Gainz Users Manual 88 purchase price for the long term and short term categories. Selling 15 shares using the Double Category selling method, specifying to sell long term shares first, results in the creation of the following closed shares records (the '#' column corresponds to the open shares records): # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 1) 1/15/91 10.0000 6.0000 60.00 0.60 1/01/90 50.00 1.00 2) 1/15/91 5.0000 6.0000 30.00 0.30 2/01/90 25.49 0.55 Both the basis amount and actual purchase amount for the open shares are stored in the closed shares records. However, only the actual purchase price is stored in the closed shares record. Thus, when reports show the basis amount and price for a sale, the basis price is calculated from the basis amount and number of shares, and rounding may slightly change the basis price. The open basis for the first record is simply the basis amount for the first open shares record: 10.0000 * 5.0000 = 50.00 The open basis for the next record is derived by multiplying the number of shares sold by the basis price of the second open shares record: (15.0000 - 10.0000) * 5.0976 = 25.49 These two closed shares records' gains are calculated with: sold_amount - basis_amount - sold_commission - open_commission 1) 60.00 - 50.00 - 0.60 - 1.00 = 8.40 (Long Term) 2) 30.00 - 25.49 - 0.30 - 0.55 = 3.66 (Short Term) ────────────────── 12.06 (Total) These work out to percentage gains of: 1) ( 8.40/50.00) * 100 = 16.80% (Long Term) 2) ( 3.66/25.49) * 100 = 14.36% (Short Term) ───────────────────────────────────────── (12.06/75.49) * 100 = 15.98% (Total) If you included commissions in the basis, then the percentage gains would be: Capital Gainz Users Manual 89 1) ( 8.40/51.60) * 100 = 16.28% (Long Term) 2) ( 3.66/26.34) * 100 = 13.90% (Short Term) ───────────────────────────────────────── (12.06/77.94) * 100 = 15.47% (Total) The open shares records remaining after selling the 15 shares are: # Date Shares Price Amount Open Bought Commission 2) 2/01/90 4.0909 5.5000 22.50 0.45 3) 3/01/90 10.5263 4.7500 50.00 1.00 The first record was removed, since all of the open shares were sold. The second open shares record was changed to reflect the sale of 5.0000 shares, and the original shares/price relationship was preserved. The Local Security File record for this security contains these values: total open shares : 14.6172 total open amount : 74.51 total open commission : 1.45 short term open shares : 14.6172 short term open amount : 74.51 short term open commission : 1.45 As you can see, the important values are maintained in the Local Security File. In essence, the open shares are treated as (rounding changed the share price from 5.0976 to 5.0974): # Date Shares Price Amount Open Bought Commission 2) 2/01/90 4.0909 5.0974 20.85 0.45 3) 3/01/90 10.5263 5.0974 53.66 1.00 If you specify to sell the short term shares first, you get the following closed shares records: # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 2) 1/15/91 9.0909 6.0000 54.55 0.55 2/01/90 46.34 1.00 3) 1/15/91 5.9091 6.0000 35.45 0.35 3/01/90 30.12 0.56 These two closed shares records' gains are: 2) 54.55 - 46.34 - 0.55 - 1.00 = 6.66 (Short Term) 3) 35.45 - 30.12 - 0.35 - 0.56 = 4.42 (Short Term) ────────────────── 11.08 (Total) Capital Gainz Users Manual 90 These work out to percentage gains of: 2) ( 6.66/46.34) * 100 = 14.37% (Short Term) 3) ( 4.42/30.12) * 100 = 14.67% (Short Term) ───────────────────────────────────────── (11.08/76.46) * 100 = 14.49% (Total) If you included commissions in the basis, then the percentage gains would be: 2) ( 6.66/47.89) * 100 = 13.91% (Short Term) 3) ( 4.42/31.03) * 100 = 14.24% (Short Term) ───────────────────────────────────────── (11.08/78.92) * 100 = 14.04% (Total) The open shares records remaining after selling the 15 shares are: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 3) 3/01/90 4.6172 4.7500 21.93 0.44 The Local Security File record for this security contains these values: total open shares : 14.6172 total open amount : 73.54 total open commission : 1.44 short term open shares : 4.6172 short term open amount : 23.54 short term open commission : 0.44 In essence, the open shares are treated as (rounding changed the share price from 5.0976 to 5.0983): # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 3) 3/01/90 4.6172 5.0983 23.54 0.44 8.2.2.7 Specific Identity (ID) Selling Method Say you decided to sell 5 shares from each of the three purchases using the Specific Identity selling method. This results in the creation of the following closed shares records (the '#' column corresponds to the open shares records): Capital Gainz Users Manual 91 # Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 1) 1/15/91 5.0000 6.0000 30.00 0.30 1/01/90 25.00 0.50 2) 1/15/91 5.0000 6.0000 30.00 0.30 2/01/90 27.50 0.55 3) 1/15/91 5.0000 6.0000 30.00 0.30 3/01/90 23.75 0.48 The open basis for each record is derived by multiplying the number of shares sold by the purchase price of the open shares record: 1) 5.0000 * 5.00 = 25.00 2) 5.0000 * 5.50 = 27.50 3) 5.0000 * 4.75 = 23.75 These closed shares records' gains are calculated with: sold_amount - basis_amount - sold_commission - open_commission 1) 30.00 - 25.00 - 0.30 - 0.50 = 4.20 (Long Term) 2) 30.00 - 27.50 - 0.30 - 0.55 = 1.65 (Short Term) 3) 30.00 - 23.75 - 0.30 - 0.48 = 5.47 (Short Term) ────────────────── 11.32 (Total) Notice here how selling shares from 3 purchases includes 3 open commissions in the gain/loss calculation. The percentage gains are: 1) ( 4.20/25.00) * 100 = 16.80% (Long Term) 2) ( 1.65/27.50) * 100 = 6.00% (Short Term) 3) ( 5.47/23.75) * 100 = 23.03% (Short Term) ───────────────────────────────────────── (11.32/76.25) * 100 = 14.85% (Total) If you included commissions in the basis, then the percentage gains would be: 1) ( 4.20/25.80) * 100 = 16.28% (Long Term) 2) ( 1.65/28.35) * 100 = 5.82% (Short Term) 3) ( 5.47/24.53) * 100 = 22.30% (Short Term) ───────────────────────────────────────── (11.32/78.68) * 100 = 14.39% (Total) The open shares records remaining after selling the 15 shares are: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 5.0000 5.0000 25.00 0.50 2) 2/01/90 4.0909 5.5000 22.50 0.45 3) 3/01/90 5.5263 4.7500 26.25 0.52 Capital Gainz Users Manual 92 Each open shares record was changed to reflect the sale of 5.0000 shares. 8.2.2.8 Short Sell (SHRT) Method Selling 15 shares using the Short Sell Method results in the creation of the following closed shares record: Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 1/15/91 15.0000 6.0000 90.00 0.90 0/ 0/00 0.00 0.00 There are no associated open shares records yet. If you purchase 15 shares for $77.50 on 1/20/91 and cover the short sale, the closed shares record is updated. For comparison, the purchase amount is the same as the previous FIFO example, and the 2% commission comes out to 1.55: Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 1/15/91 15.0000 6.0000 90.00 0.90 1/20/91 77.50 1.55 The closed shares record's gain is calculated with: sold_amount - basis_amount - sold_commission - open_commission 90.00 - 77.50 - 0.90 - 1.55 = 10.05 (Short Term) This works out to a percentage gain of: (10.05/77.50) * 100 = 12.97% (Total) If you included commissions in the basis, then the percentage gain would be: (10.05/79.95) * 100 = 12.57% (Total) Short sales do not appear on the tax reports until they are covered. 8.2.2.9 Return of Principal (PRIN) Method If you purchased 5 shares in a partnership at $1000 per share, with a 5% commission, the following open shares record are created: Date Shares Price Amount Open Bought Commission 1/01/90 5.0000 1000.0000 5000.00 250.00 Recording a $100 return of principal creates the following closed Capital Gainz Users Manual 93 shares record: Date Shares Price Amount Close Open Open Open Sold Comm Date Basis Comm 1/15/91 0.0000 1000.0000 100.00 0.00 1/01/90 100.00 0.00 The open shares record is modified to reflect the reduction in principal: Date Shares Price Amount Open Bought Commission 1/01/90 5.0000 1000.0000 4900.00 250.00 After depleting the basis, you would record a capital gain distribution. A return of principal is listed in Part II of Schedule B, but then subtracted out as a non-taxable distribution. 8.2.2.10 Compare Examples In this example, the selling methods resulted in the following gains (the figures in parenthesis show the results if commissions are included in the basis): MAX : Gain of $15.28 +21.11% (+20.45%) LIFO : Gain of $13.00 +17.42% (+16.88%) DCAT, Long Term : Gain of $12.06 +15.98% (+15.47%) SCAT : Gain of $11.58 +15.24% (+14.77%) ID : Gain of $11.32 +14.85% (+14.39%) DCAT, Short Term: Gain of $11.08 +14.49% (+14.04%) FIFO : Gain of $10.05 +12.97% (+12.57%) SHRT : Gain of $10.05 +12.97% (+12.57%) MIN : Gain of $ 7.96 +10.01% (+ 9.70%) Capital Gainz Users Manual 94 8.3 Record Distribution [[Screen not in online version.]] To record a distribution, you fill in the Record Distribution Form. This form displays the last entered symbol, the current or last entered date, and the DIV or INT distribution type. You then enter: o (Required) The symbol of the local security for the distribution. If you leave this entry blank or enter an invalid symbol, the Security Lookup Table, described on page 70, pops up. After you enter a valid symbol, the security's name is displayed. o (Required) The date of the distribution. If the displayed date is correct, just hit the ENTER key. If you want a different date, just enter it over the displayed date. o (Required) The type of the distribution. If you enter an invalid type, or leave the field blank, the Distribution Type Lookup Table pops up. Distribution types are discussed in detail below. After you enter the symbol, date, and type, Capital Gainz searches the Price History File for the associated global security. If you recently recorded a distribution for this global security, you are asked if you want to use the distribution from that date. There are two reasons for this. You may be erroneously adding a distribution for the second time, or you may already have recorded this distribution for another local security linked to the same global security. In the second case, you should answer YES to fill in the date and per share value of the distribution. o (Required/Calculated) The total amount of the distribution or fee. (If you are entering a FEE, just enter the amount and Capital Gainz will know that it's negative.) After entry, this value is divided by the number of open shares of the security to get an approximate distribution per share figure. This per share figure may be incorrect due to rounding and partial dividends for funds not held during the entire period. You can leave the amount entry blank, and let Capital Gainz calculate it using the number of open shares and the per share entry. o (Required/Calculated) The distribution per share. This field is skipped for FEEs. The distribution per share figure directly affects the Current Yield calculation. (See Chapter 18 for details.) Capital Gainz makes a best guess at it by dividing the distribution amount by the number of open shares. You should enter the actual per share amount of the distribution as shown in your security's distribution notice. You must enter at least one of: amount and per share (unless you turn off automatic calculations). Capital Gainz Users Manual 95 o (Optional) Twenty characters of notes about the distribution, so you can enter information such as 'QUARTERLY DIVIDEND' or 'ANNUAL CAP GAINS'. The per share values that you let Capital Gainz calculate for mutual funds and bonds are usually close to the actual amount, but you usually need to adjust them. This is caused by some shares being held less than the full dividend period. Stock dividends should be computed correctly - if not, make sure that you have correctly set the precision values for your local securities. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the distribution record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Activity Menu. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. o F2:Buy Shares - exit immediately, and bring up the Buy Shares Form. This is a short-cut key, since you get the same result by exiting from the form and choosing the Buy Shares option on the Activity Menu. o F3:Sell Shares - exit immediately, and bring up the Sell Shares Form. This is a short-cut key, since you get the same result by exiting from the form and choosing the Sell Shares option on the Activity Menu. o F5:Calc On/Calc Off - turns off automatic calculations. If you turn off calculations, you can enter 0 for the amount. After completing the form, the distribution record is written to disk. Then: If you just recorded a dividend or capital gain distribution and specified YES for the Reinvest option in the User Settings Form: you are asked if you want to reinvest the distribution. If you answer YES, then you are taken to the Buy Shares Form, now labeled Reinvest Distribution. Although you will normally reinvest in the same security, you must enter the symbol on the Buy Form. It's possible that you may want to direct the distribution elsewhere, such as reinvesting stock dividends into a money market fund. After accepting the local security symbol, the rest of the values are filled in. You will probably need to change the purchase price, Capital Gainz Users Manual 96 which is set to the last recorded price. For more information on buying shares, see the section on the Buy Shares Form. After completing the Buy Shares Form, the reinvestment is complete and you return to the Record Distribution Form. If you just recorded a fee: Capital Gainz asks if you want to sell shares to cover the fee. This is normally what a mutual fund company will do when an IRA fee is due and you do not send in a separate payment. If you answer YES, you are taken to the Sell Shares Form, now labeled Sell Shares to Cover Fee. Although you will usually sell shares of the same security, you must accept the symbol on the Sell Shares Form. It's possible that you may be set up to cover fees from a separate money market account. After accepting the local security symbol, the rest of the values are filled in. You will probably need to change the selling price, which is set to the last recorded price. For more information on selling shares, see the section on the Sell Shares Form. After completing the Sell Shares Form, you return to the Record Distribution Form. When you return to the Record Distribution Form, most of the field values stay the same, and the cursor goes back to the Symbol field. In other words, this form is repeatedly accepted until you explicitly exit from it. To remind you how many distributions you've recorded in the current session, a counter is displayed in the upper righthand corner of the form. A price history entry is added unless you used a previously recorded distribution. See page 108 for detailed information on conditions for adding a record to the Price History File. Chapter 10 discusses changing and deleting distribution records. 8.3.1 Distribution Types [[Screen not in online version.]] The Distribution Type Lookup Table is brought up if you enter an invalid distribution type. Hitting ENTER selects the highlighted distribution type. 8.3.1.1 Dividend/Interest (DIV/INT) Distribution Type The dividend distribution type, DIV, is used to record dividends, while the interest distribution type, INT, is used to record interest. These are mutually exclusive, and only one of them is available depending on how you defined the global security. If the security's number of dividends or interest per year value is 0 when you record a dividend or interest, it is changed to 1. Capital Gainz Users Manual 97 8.3.1.2 Short Term Capital Gains (STCG) Distribution Type The short term capital gains distribution type, STCG, is used to record short term capital gains distributions. Your broker/investment company statement that you receive in the mail should indicate whether a capital gains distribution is short term or long term. If the statement does not indicate if the distribution was long term or short term gains, assume it was long term gains. 8.3.1.3 Long Term Capital Gains (LTCG) Distribution Type The long term capital gains distribution type, LTCG, is used to record long term capital gain distributions. The broker/investment company statement that you receive in the mail should indicate whether a capital gains distribution is short term or long term. If the statement does not indicate if the distribution was long term or short term gains, assume it was long term gains. 8.3.1.4 Fees (FEE) The fee type, FEE, is used to record miscellaneous fees, such as an IRA maintenance fee, which can't be associated with a specific share purchase or sale. You record this type under distributions because its infrequent use does not warrant a separate log or screen group, and the necessary information is similar to the information saved for other distribution types. Enter a positive number for this value, as Capital Gainz knows to subtract it from the totals. You don't enter per share amounts for this distribution type. Fees only factor into the total portfolio performance calculation, and serve mostly a note-keeping function. If you want to exclude purchase or selling commissions from gain/loss calculations, but still want to record them somewhere, you can enter them as FEEs. 8.3.1.5 Return of Principal (PRIN) A return of principal could be thought of as a distribution. However, it exhibits the characteristics of a sale since it reduces your open basis. You can record a return of principal here, but no distribution records are created. Instead, you create a closed shares record as described below. Return of principal is generally associated with Unit Trusts or Partnerships, where you receive non-taxable returns of capital until the initial investment has been depleted. In Capital Gainz, Return of Principal is recorded as a sale of 0 shares, reducing your basis by the selling amount. If you try to record a return of principal amount greater than your remaining basis, Capital Gainz returns an error. After exhausting the basis, future distributions should be classified Capital Gainz Users Manual 98 as long term or short term capital gains. You can determine the remaining basis from the basis of the current open shares. You can record a return of principal from the Sell Shares Form or the Record Distribution Form. On the Record Distribution Form, use the PRIN distribution type. 8.3.2 Distribution Example For example, say a mutual fund makes the following distributions and charges the following fees: # Date Amount Per Share Type 1) 1/ 1/90 7.20 0.24 Dividend 2) 2/ 1/90 0.90 0.03 Long Term Capital Gain 3) 3/ 1/90 5.00 Fee Assume the shares are selling at $6.00 each, and the mutual fund distributes dividends semi-annually. The current yield is: ((dividend_per_share * dividends_per_year)/price) * 100 = ((0.24 * 2)/6.00) * 100 = 8.00% From this example, you can see the importance of the 'dividends per year' figure associated with a security through the Global Security Form. Also, notice that a fee has no associated per share value. Now let's assume that the initial share purchase was on 1/1/90 at $5.00 per share. The current share price, on 1/15/91, is $6.00 per share. The total return for the mutual fund over the period is: Reinvest (1 * 0.24/share on 1/ 1/90 at 5.00 = .0480 shares Reinvest (1.048 * 0.03/share on 2/ 1/90 at 5.50 = .0057 shares Total shares bought = .0480 + .0057 = .0537 Amount at start = 1 share at 5.00 = 5.00 Amount at end = (1 + .0537) shares at 6.00 = 6.322 Total Return = ((6.322 - 5.00)/5.00) * 100 = 26.44% More details on the calculations employed by Capital Gainz are given in Chapter 18. Capital Gainz Users Manual 99 Capital Gainz Users Manual 100 Chapter 9 - Local Securities [[Screen not in online version.]] The Local Security Table, brought up from the Main Menu, shows three lines of information for each local security in the current portfolio, with securities listed in alphabetical order by symbol. For a detailed discussion of the relation between local and global securities, refer to page 16. The values displayed for each local security are: o Local security symbol. o Global security name, plus '(IRA)' if you specified that the local security was held in an IRA or other tax deferred program. o Last price and last price date. o Current number of open shares. o Current yield. o Average purchase price for the open shares. o Cost of open shares. o Current value of open shares. o Current open share gain/loss amount and percentage. Also, portfolio totals are displayed at the bottom of the screen for: o Total value of open shares for all securities. o Total gain/loss amount and percentage for all securities. The Current Yield, Average Price, Value, and Gain/Loss calculations are discussed in detail in Chapter 18. You may see a discrepancy between the open value and gain/loss figures in the Local Security Table and the Open Shares Log or Open Shares Detail Report. For the sake of expediency, the Local Security Table multiplies the cumulative number of shares by the current price to get the total open value. However, the Open Shares Log and the Open Shares Detail Report do a record by record calculation, rounding each record's open value. At the bottom of the Local Security Table is a horizontally scrollable row of functions. Using function keys, you can: Capital Gainz Users Manual 101 o INS:Add - add a security. o ENTER:Change - change the highlighted security. o DEL:Delete - delete the highlighted security. o ESC:Exit - exit from the table, returning to the Main Menu. o F2:Portfolio Detail - generate the Portfolio Detail Report. o F3:Price History - view the price history table for the highlighted security. o F4:Price Update - update the prices of all local securities in the portfolio, entering the information from the screen or a file. o F5:Mixed Detail Report - generate the Mixed Detail Activity Report for the highlighted security. o F6:Activity Summary - generate the Activity Summary Report for the highlighted security. o F7:Split - execute a stock split for the highlighted security. o F8:Portfolio Allocation - generate the Allocation Report. o F9:Fixup - bring up the Local Security Fixup Form for the highlighted security. Each of these functions are described below. 9.1 Add a Local Security [[Screen not in online version.]] The Local Security Form is brought up to add a local security when you hit the INS key while viewing the Local Security Table. The bottom half of the form displays information about the associated global security. The fields in the Local Security Form are: o (Required) The local symbol for the security. This is a good, short-hand tag, and is used in most of the other forms and screens. In most cases, this will be the same as the related global security symbol. o (Required) The global security symbol to link the local security with. For a discussion of the relationship between local and global security symbols, see page 16. If you enter an invalid global symbol, or leave it blank, the Global Security Table pops up. This Capital Gainz Users Manual 102 table is described below. After you enter a valid global symbol, or select one from the Global Security Table, the bottom half of the Local Security Form is filled in. Also, the broker/investment company and account number specified for the global security are used in the corresponding local security fields. o (Required) The broker/investment company responsible for selling and/or holding the shares. For stocks and bonds, this will be a broker or the actual company. For mutual funds, this will be the mutual fund investment company or a broker. This name provides a link to the Broker/Investment Company File, which contains addresses and phone numbers. If you leave this entry blank or enter an invalid name, the Broker/Investment Company Lookup Table pops up. This table is described below. A discussion of how broker/investment companies are related to local and global securities appears on page 22. o (Optional) Account number. For stocks and bonds, this will be your brokerage account number or company dividend reinvestment plan number. For mutual funds, this will be your fund's account number or a brokerage account number. A discussion of how account numbers are related to local and global securities begins on page 22. o (Required) Selling method. Entering a blank or invalid selling method causes the Sell Method Lookup Table to pop up. This table is described below. After you enter or select a selling method, the selling method's description is displayed. o (Required) Tax exempt status. If this security is held in an IRA, Keough, or pension plan, it's probably tax exempt. The Schedule B and D-1 Reports rely on this value, and skip any securities marked as tax exempt. The Security Table appends '(IRA)' to a security flagged as tax exempt. Note that a tax exempt security is different from a security whose dividends are tax free. Tax free status is built into the security type chosen. o (Required) Price precision. This value tells Capital Gainz how many decimal places you use for prices when referring to this local security. This is important if you want accurate figures calculated on the Buy Shares Form and Sell Shares Form. o (Required) Shares precision. This value tells Capital Gainz how many decimal places you use for share fractions when referring to this local security. This is important if you want accurate figures calculated on the Buy Shares Form and Sell Shares Form. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the local security Capital Gainz Users Manual 103 record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Local Security Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. After completing the form, the local security record is added. You return to the Local Security Table, and the just added local security is highlighted. 9.1.1 Broker/Investment Company Lookup [[Screen not in online version.]] The Broker/Investment Company Lookup Table is brought up automatically if you enter an invalid broker/investment company name. This table simply lists all of the previously entered broker/investment company names. This table is used instead of the Broker Table, which only shows 4 broker/investment companies at a time. If you entered an invalid broker/investment company, the cursor is positioned on the broker/investment company that best matches the entered symbol. Function keys at the bottom of the screen are: o ENTER:Select - select the highlighted broker/investment company, inserting its name into the form's broker/investment company name field. o INS:Add - define a new broker/investment company. o F2:Change - change the highlighted broker/investment company. o DEL:Delete - delete the highlighted broker/investment company. o ESC:Exit - exit from the table, without selecting a broker/investment company. See Chapter 13 for details on adding, changing, and deleting broker/investment companies. 9.1.2 Selling Methods The Sell Method Lookup Table, described on page 78, is brought up automatically if you enter an invalid selling method. The sell method selected can be changed later, or a different sell method can be Capital Gainz Users Manual 104 specified when shares of this security are actually sold, unless you already sold shares with an average price selling method. According to the IRS, once you sell any shares of a mutual fund using an average price method, you must continue using that average price selling method in the future. Even if you plan to use an average price selling method, it's a good idea to defer this selection until you actually sell shares. Detailed information on each selling method is given in Chapter 19. 9.2 Change a Local Security The Local Security Form is brought up to change the highlighted local security when you hit the ENTER key while viewing the Local Security Table. The Local Security Form, described on page 102, is initialized to the current values of the local security to be changed. Function keys at the bottom of the screen are: o Form Accept - accept all entries and update the local security record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Local Security Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. o F2:Price Update - enter a date/price value for this security. o F3:Change Global Security - bring up the Global Security Form to change values in the related global security. After completing the form, the local security record is updated. If you changed the security's symbol, all of the security's open shares, closed shares, and distribution log records are also changed. Confirmation is required regardless of the Confirm Update global setting, since many records could be affected. You return to the Local Security Table, and the just added local security is highlighted. 9.2.1 Price Update Choosing the Price Update function key on the Local Security Form brings up the Price Form to record a price/date for the related global security. See the Add a Price History Entry on page 108 for details. Capital Gainz Users Manual 105 9.2.2 Change Global Security The Change Global Security function key on the Local Security Form lets you bring up the Global Security Form to modify the associated global security. This form is discussed beginning on page 134. If you just want to change the global security symbol that the local security is linked to, use the global security symbol field on the Local Security Form. 9.3 Delete a Local Security The Local Security Form is brought up to delete the highlighted local security when you hit the DEL key while viewing the Local Security Table. The Local Security Form, described on page 102, is initialized to the current values of the security to be deleted. The local security record is deleted, as are all related activity records. Confirmation is required regardless of the Confirm Delete global setting, since many records could be affected. When you finish with the Local Security Form, you return to the Local Security Table, and the security after the one just deleted is highlighted. 9.4 Portfolio Detail The Portfolio Detail Report, similar in format to the Local Security Table, is available via a function key on the Local Security Table. See page 152 for a description of this report. 9.5 Price History [[Screen not in online version.]] When you choose the Price History function key from the Local Security Table, you are asked if you want to see all dates or a range of dates. (The Dates Form is described on page 117.) Then, the Price History Table for the highlighted local security and requested range of dates is shown. The Price History Table shows: o The associated global security symbol and name. Remember that the price information is related to the global security, not the local security. Price history records are interleaved with distribution records and stock split information, sorted in descending date order. For price history records, you're shown: o The date of the price. Capital Gainz Users Manual 106 o The price. For distribution records, you're shown: o The date of the distribution. o The type of distribution. o The distribution amount per share. For stock splits, you're shown: o The date of the split. o The split ratio. At the bottom of the table, you're shown: o The high price and date, low price and date. o The simple average price. o The total distribution per share. The table includes distribution per share amounts to explain price drops due to dividend or capital gain payouts. Stock split information is shown for historical reference only. The highest price for the period is flagged with an 'H', and the lowest price for the period is flagged with an 'L'. If the highest and lowest prices are the same, it is flagged with an '*'. Function keys at the bottom of the screen are: o INS:Add - add price, distribution, or split information for the global security. o ENTER:Change - change the highlighted price, distribution, or split information for the global security. o DEL:Delete - delete the highlighted price, distribution, or split information for the global security. o ESC:Exit - exit from the Price History Table. o F2:Del Range - delete the displayed range of price history information. If you select this option, then you are asked if you want to delete the price information, the distribution information, or both. Capital Gainz Users Manual 107 o F3:Report - print the Price History Report for the displayed global security and date range. The Price History Table and Price History Report are valuable tools for investment analysis. See Chapter 18 for details. 9.5.1 Add a Price History Entry [[Screen not in online version.]] The Price Form is brought up to add a Price History File entry when you hit the INS key from the Price History Table. The global security's symbol and name from Price History Table are displayed, and you enter: o (Required) The date for the price information. o (Required) The type of price history data. If you leave this field blank, or enter an invalid value, the Price Type Lookup Table pops up for you to select from. This table is described below. If you selected the Price type: o (Required) The price of the security. If you selected the Dividend, Interest, Long Term Capital Gain, or Short Term Capital Gain type: o (Required) The distribution per share. If you selected the Split type: o (Required) The stock split ratio. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the price history record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Price History Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. If an existing record has the same type/date, it will be overwritten with the just entered information. If no record exists for the entered type/date, then the new record is generally added. The Capital Gainz Users Manual 108 Price type is an exception. This is due to the price history interval user setting. Here are the rules that Capital Gainz enforces for adding a price history entry of type Price: o Always add entries that precede or follow all existing dates. o If a price history entry exists for the entered date, then overwrite it with the information just entered. o Don't add entries that are not at least the specified price history interval away from the next and previous dates. (This is not enforced if you add a price directly from the Price History Table.) o If an entry causes an existing entry to be less than the price history interval away from its next and previous entries, delete the exiting one and add this one. o Always save prices that have the same date as a distribution per share entry. This allows the total return figure to be as accurate as possible. Thus, o The entered date/price may or may not be put in the file. o If the date/price is put in the file, then an existing entry may or may not be deleted. After completing the form, the price history record is added. You return to the Price History Table, and the just added price history entry is highlighted. 9.5.1.1 Price Type Lookup Table [[Screen not in online version.]] The Price Type Lookup Table is brought up if you enter an invalid price type. This table is similar to the Distribution Type Lookup Table described on page 97, except for a few different entries. Hitting ENTER selects the highlighted price type. The price types are: o PRC - Price o DIV - Dividend or INT - Interest o STCG - Short Term Capital Gain Capital Gainz Users Manual 109 o LTCG - Long Term Capital Gain o SPLT - Stock Split Entering a Stock Split here simply records it - the split is not executed. 9.5.2 Change a Price History Entry The Price Form is brought up to change the highlighted price history record when you hit the ENTER key. The Price Form, described in the Add a Price History Entry section, is initialized to the current values of the price history record to be changed. You can't change the price history type. Instead, you should delete the original and then add the new one. If you change a Price record, then the original is deleted and the new record is added according to the rules given in the Add a Price History Entry section. You return to the Price History Table, and the just changed record is highlighted. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the price history record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Price History Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. 9.5.3 Delete a Price History Entry The Price Form is brought up to delete the highlighted price history record when you hit the DEL key. The Price Form, described in the Add a Price History Entry section, is initialized to the current values of the price history record to be deleted. After deleting the price history record, you return to the Price History Table, and the record after the deleted record is highlighted. 9.5.4 Delete a Range of Prices The Del Range function key allows you to delete the displayed range of price history records, based on the previously entered date range. You are also given the option of deleting the displayed prices, Capital Gainz Users Manual 110 the displayed distributions, or both. [[Screen not in online version.]] You will always be prompted for confirmation, regardless of the Confirm Delete global setting, since many records could be affected. After the deletion, you return to the Local Security Table. 9.5.5 Price History Report The Price History Report, similar in format to the Price History Table, is generated for the previously entered date range. See page 159 for a description of this report. 9.6 Price Update [[Screen not in online version.]] After selecting the Price Update function key, you are asked if you want to update security prices from the screen or from a file. Also, a function key at the bottom of the screen lets you: o F2:Create Skeleton File - create a 'skeleton' price update file in the correct format, showing all global security symbols and their latest price/date information. This gives you an example file to use in creating your own update file - just use any text editor to change it and add your own information. You must enter a valid DOS filename to print the information to. 9.6.1 Price Update From the Screen [[Screen not in online version.]] To update prices from the screen, you are stepped through each local security and prompted for the date and share price for the corresponding global security. This is a quick way to prepare for printing reports at the end of the month, quarter, or year. The Price Update Form shows the global security name and symbol, and accepts: o (Required) Date for the price. The first entry automatically displays the current system date, and subsequent securities show the last entered date. You can accept this date or enter a different one. o (Required) Price of the security. If all you have is a fractional figure, use the Fraction-to-Decimal Table displayed to convert it Capital Gainz Users Manual 111 to a decimal value. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the price history record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Local Security Table. You can redefine this key from the default CTRL-ESC value. o F2:Skip Forward - skip the currently displayed global security, and go to the next one. o F3:Skip Backward - skip the currently displayed global security, and go to the previous one. After completing a form, the record is written to the Price History File. If a price history entry exists for the entered symbol/date, that entry's price is changed to the entered price. See the prior section on Add a Price History Entry for detailed information on conditions for adding a price history record. 9.6.2 Price Update From a File To update prices from a file, you are prompted to enter the name of the comma-delimited price file to read in. The format of this file is: GLOBAL-SYMBOL,PRICE,DATE The GLOBAL-SYMBOL and DATE fields can be quoted, but they don't have to be. Each global security that you want to update is on a line by itself. The DATE field may be omitted, in which case the current date is used. Or, you can only specify a DATE field for the first record, and this date will also be used for the prices that follow. As described previously, you can generate a 'skeleton' price file containing all global security symbols. For each record read in the price file, a price history entry is added according to the rules given in the Add a Price History Entry section. See page 171 for information on how you can get Capital Gainz to automatically read in the price file every time you start it. Capital Gainz Users Manual 112 9.7 Mixed Detail Report Choosing the Mixed Detail Report function key from the Local Security Table generates the Mixed Activity Detail Report for the highlighted security, after prompting you for the date range. See page 165 for a description of this report. 9.8 Activity Summary Choosing the Activity Summary function key from the Local Security Table generates the Activity Summary Report for the highlighted local security, after prompting you for the date range. See page 157 for a description of this report. 9.9 Split Shares [[Screen not in online version.]] When a security you own declares a stock split, you need to record the split in Capital Gainz. The split is applied to all local securities, in all portfolios, that are linked to the associated global security. Stock splits can: o Increase the number of shares, such as in a 2-for-1 split or a non- taxable stock dividend. For a 10% non-taxable stock dividend, you can declare a 1.1-for-1 split. Whenever you increase the number of shares, the basis price of the shares is decreased. o Decrease the number of shares, such as in a 1-for-3 split. Whenever you decrease the number of shares, the basis price of the shares is increased. To record a split, bring up the Stock Split Form for the highlighted local security on the Local Security Table by selecting the Stock Split function key. The fields on this form are: o (Displayed) The global security symbol to be split. This is derived from the local security selected. o (Required) The date of the split. After you enter the date, Capital Gainz searches the Price History File for recent splits. If you recently performed a split on this global security, Capital Gainz displays the date of the split and asks if you want to continue. If you answer NO, then you return to the Local Security Table. o (Required) The split ratio, entered as VALUE1 for VALUE2. So, for a 2 for 1 split, enter 2 for VALUE1 and 1 for VALUE2. You are always asked for confirmation at the end of the Stock Capital Gainz Users Manual 113 Split Form, regardless of your global setting specifications. Function keys displayed at the bottom of the form are: o Form Accept - accept all entries and execute the stock split. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL- ENTER value. o Form Reject - exit immediately, back to the Local Security Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. After you complete the Stock Split Form, a counter displays the progress of the share splitting procedure. All open shares records and distribution records for affected local securities, and the price history files for the global security, are updated to reflect the split ratio. File data is actually being changed while this counter is displayed. 9.9.1 Split Ratio You enter the stock split ratio in the Stock Split Form. Thus, if each share is split into two shares, the ratio is '2 For 1'. The number of shares are multiplied by the ratio, while the price per share is divided by the ratio. Reversing a split is simple: just split the shares with the inverse split ratio. So, if you performed a 2-for-1 split, to reverse it you'd perform a 1-for-2 split. 9.9.2 Example Say you have the following open shares information for a local security: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 10.0000 5.0000 50.00 1.00 2) 2/01/90 9.0909 5.5000 50.00 1.00 3) 3/01/90 10.5263 4.7500 50.00 1.00 Also, you've recorded the following distributions: # Date Amount Per Share Type 1) 1/01/90 7.20 0.24 Dividend 2) 2/01/90 0.90 0.03 Long Term Capital Gain 3) 3/01/90 5.00 Fee Capital Gainz Users Manual 114 Then, assuming a price history interval of 28 days, you've generated the following price history records: Type Date Price Per Share 1) Price 1/01/90 5.0000 2) Div 1/01/90 0.24 3) Price 2/01/90 5.5000 4) LTCG 2/01/90 0.03 5) Price 3/01/90 4.7500 Then, recording a 2 for 1 stock split alters the records as follows. Open shares records: # Date Shares Price Amount Open Bought Commission 1) 1/01/90 20.0000 2.5000 50.00 1.00 2) 2/01/90 18.1818 2.7500 50.00 1.00 3) 3/01/90 21.0526 2.3750 50.00 1.00 Distribution records: # Date Amount Per Share Type 1) 1/01/90 7.20 0.120 Dividend 2) 2/01/90 0.90 0.015 Long Term Capital Gain 3) 3/01/90 5.00 Fee Price history records: Type Date Price Per Share 1) Price 1/01/90 2.7500 2) Div 1/01/90 0.120 3) Price 2/01/90 2.7500 4) LTCG 2/01/90 0.015 5) Price 3/01/90 2.3750 9.10 Portfolio Allocation Choosing the Allocation Report function key from the Local Security Table generates the Allocation Report for the current portfolio. See page 154 for a description of this report. 9.11 Fixup a Local Security [[Screen not in online version.]] The Local Security Fixup Form, available from the Fixup function key on the Local Security Table, allows you to modify the 'hidden' Capital Gainz Users Manual 115 values for the highlighted local security record. If Capital Gainz terminates abnormally while adding, changing, or deleting records, the open share information stored in the security records may become out of sync with the actual values in the open shares file. If this happens, you can change the information in the security records using the Local Security Fixup Form. Individual activity log entries must be fixed by hand prior to running fixup on the local security. The Local Security Fixup Form accepts: o Total open shares, open amount, and open commission. o Short term open shares, open amount, and open commission. These are only used for securities that employ the Double Category selling method. Otherwise, short term and long term status is based on the current system date. 9.11.1 Totals Fixup usually requires the local security's values to be set to the totals in the Open Shares Log. If you select the Totals function key, these totals will be calculated and entered into the appropriate fields of the form. Totals are calculated by tracing purchases and sales from the beginning, similar to the way performance is calculated on the Activity Summary Report. Thus, totaling open share information should result in correct values for open amounts, regardless of the selling method used. Short term totals are only calculated for local securities that use the Double Category selling method. Capital Gainz Users Manual 116 Chapter 10 - Log Maintenance [[Screen not in online version.]] You get to the Log Maintenance Menu from the Main Menu by choosing Log Maintenance. From there, you can choose to view either the Open Shares, Closed Shares, or Distribution Log. You can limit the records displayed by specifying a date range. After selecting the log type and the date range and bringing up the log, you enter the symbol of the security whose records you want displayed. Function keys at the bottom of the screen are: o ENTER - accepted the highlighted choice. o ESC:Exit - return to the Main Menu. o F10:DOS - suspend Capital Gainz and invoke the DOS Shell. [[Screen not in online version.]] If you hit the F2:Select Date Range function key on the Log Maintenance Menu, the Dates Form pops up. Enter the beginning and ending dates of the activity records you want displayed. The function keys at the bottom of the screen are: o F2:All Dates - use all dates instead of entering a date range. Capital Gainz Users Manual 117 10.1 Open Shares Log [[Screen not in online version.]] The Open Shares Log requires you to enter the symbol of the local security whose open shares records you want to view. If you leave this entry blank, or enter an invalid name, the Local Security Lookup Table pops up. This table is described on page 70. After you enter a valid security symbol, the Open Shares Log shows the security's name, the current date or the specified date range, and the security's current price. The records of shares bought over the period and still held as of the current date are sorted in ascending order by date, and show: o The purchase date. o The number of shares purchased. o The basis price, which is the same as the purchase price if a category method is not being used. o The basis amount, which is the same as the purchase amount if a category method is not being used. o The purchase commission or load. o The current gain/loss. At the bottom of the table, these values are totalled for the specified date range. The function keys at the bottom of the screen are: o INS:Add - bring up the Buy Shares Form to record a purchase. o ENTER:Change - bring up the Buy Shares Form to change the highlighted open shares record. o DEL:Delete - delete the highlighted open shares record, after first displaying it in the Buy Shares Form. o F2:Del Range - delete the displayed range of open shares records. o F3:Report - generate the Open Shares Detail Report for the displayed local security and date range. o F4:Symbol - go to the Symbol field to enter a different symbol. o ESC:Exit - go to the Symbol field, or exit from the Open Shares Capital Gainz Users Manual 118 Log, returning to the Log Maintenance Menu, if you are on the Symbol field. 10.1.1 Add an Open Shares Record If you hit the INS key to add an open shares record, the Buy Shares Form pops up. The fields in this form are described in detail beginning on page 68. However, you can't go to the Sell Shares Form or Record Distribution Form. Adding an open shares record is the same as recording a share purchase. However, while the Buy Shares Form is accepted repeatedly when reached through the Activity Menu, it is only accepted once when brought up from the Open Shares Log. A price history entry may or may not be added based on the entered price and date. See page 108 for detailed information on conditions for adding a record to the Price History File. After entering the purchase, you return to the Open Shares Log, and the new record is highlighted. 10.1.2 Change an Open Shares Record If you hit the ENTER key to change the highlighted open shares record, the Buy Shares Form pops up. The fields in this form are described in detail in 68. You can't go to the Sell Shares Form or Record Distribution Form. The fields in the Buy Shares Form are initialized to the record's current values. You can change all of the fields except the security symbol. Even if a category method is being used, the actual purchase price and amount are displayed. If you changed the price and a corresponding price history entry exists, it's deleted and the new price is added. See page 108 for detailed information on conditions for adding a record to the Price History File. After changing the open shares record, you return to the Open Shares Log, and the changed record is highlighted. 10.1.3 Delete an Open Shares Record If you hit the DEL key to delete the highlighted open shares record, the Buy Shares Form pops up. The fields in this form are described in detail beginning on page 68. Capital Gainz Users Manual 119 The fields in the Buy Shares Form are initialized to the record's current values. Even if a category method is being used, the actual purchase price and amount are displayed and used in the deletion. If a corresponding price history entry exists, it's deleted. After deleting the open shares record, you return to the Open Shares Log, and the record after the deleted record is highlighted. 10.1.4 Delete Range The Del Range function key allows you to delete the displayed range of open shares records, based on the previously entered date range. You will always be prompted for confirmation, regardless of the Confirm Delete global setting, since many records could be affected. The corresponding price history entries are not deleted. After the deletion, you return to the Log Maintenance Menu. 10.1.5 Open Shares Detail Report The Open Shares Detail Report can be printed for the displayed local security and selected date range. See page 161 for the format of this report. 10.1.6 Enter Local Symbol If you hit the Symbol function key, you are taken to the symbol entry field at the top of the table. This is the same as hitting the ESC key. Capital Gainz Users Manual 120 10.2 Closed Shares Log [[Screen not in online version.]] The Closed Shares Log requires you to enter the symbol of the local security whose closed shares records you want to view. If you leave this entry blank, or enter an invalid name, the Local Security Lookup Table pops up. This table is described on page 68. After you enter a valid security symbol, the Closed Shares Log shows the security's name and the current date or the specified date range. The closed shares records are sorted in ascending order first by the sell date and then by the purchase date, and show: o The selling date. o The number of shares sold. o The selling price. o The selling amount. o The selling commission or load. o The gain/loss from the sale. At the bottom of the table, these values are totaled for the specified date range. The function keys at the bottom of the screen are: o INS:Add - bring up the Sell Shares Form to record a purchase. o ENTER:Change - bring up the Sell Shares Form to change the highlighted closed shares record. o DEL:Delete - delete the highlighted closed shares record, after first displaying it in the Sell Shares Form. o F2:Del Range - delete the displayed range of closed shares records. o F3:Report - generate the Closed Shares Detail Report for the displayed local security and date range. o F4:Symbol - go to the Symbol field to enter a different symbol. o ESC:Exit - go to the Symbol field, or exit from the Closed Shares Log, returning to the Log Maintenance Menu, if you are on the Capital Gainz Users Manual 121 Symbol field. 10.2.1 Add a Closed Shares Record If you hit the INS key to add a closed shares record, the Sell Shares Form pops up. The fields in this form are described in detail beginning on page 75. However, you can't go to the Buy Shares Form or Record Distribution Form, and can't redistribute the proceeds. Adding closed shares records is the same as selling shares. However, while the Sell Shares Form is accepted repeatedly when reached through the Activity Menu, it is only accepted once when brought up from the Closed Shares Log. A price history entry may or may not be added based on the entered price and date. See page 108 for detailed information on conditions for adding a record to the Price History File. After entering the sale, you return to the Closed Shares Log, and the first new record added is highlighted. 10.2.2 Change a Closed Shares Record If you hit the ENTER key to change the highlighted closed shares record, the Sell Shares Form pops up. The fields in this form are described in detail beginning on page 75. You can't go to the Buy Shares Form or Record Distribution Form. The fields in the Sell Shares Form are initialized to the record's current values. You can change all of the fields except the security symbol, the selling method, and the number of shares. The selling method and number of shares sold can't be changed because of complicated interrelationships. To change these fields, delete and 'unsell' the shares, as described below. Then, re-execute the sale. Also, you'll have to do this to switch between long term and short term status for a sale, since this is assigned at the time of the actual sale by comparing the closing date to the open date. When you change a closed shares record, the open and close dates are compared to the current holding period and the short/long term status is changed if necessary. If you changed the price and a corresponding price history entry exists, it's deleted and the new price is added. See page 108 for detailed information on conditions for adding a record to the Price History File. After changing the closed shares record, you return to the Closed Capital Gainz Users Manual 122 Shares Log, and the changed record is highlighted. 10.2.3 Delete a Closed Shares Record If you hit the DEL key to delete the highlighted closed shares record, the Sell Shares Form pops up. The fields in this form are described in detail on page 75. The fields in the Sell Shares Form are initialized to the record's current values. If a corresponding price history entry exists, it's deleted. Before the record is deleted, you are given the option to 'unsell' the shares: [[Screen not in online version.]] 'Unselling' closed shares records means that the open share information is added back to the Open Shares File. The price used for the open shares record is the actual purchase price, which may be different from the basis price if you used a category selling method. The net effect is that you reverse the selling of these open shares. However, any note previously attached to the open shares is not restored. Instead, a default note of 'UNSOLD' is used. If you choose not to 'unsell' the shares, the closed shares record is simply deleted. You can unsell a sold shares record that was created for a return of principal as well. Since the sold shares record has 0 shares, the net effect is that you add the principal back to the basis of the open shares. When sold shares records are unsold, Capital Gainz tries to recombine the shares with any existing open shares records. For instance, say you sold 100 shares from a purchase of 200 shares, which changes the open shares record to only have 100 shares. If you then unsold the 100 shares, Capital Gainz will combine the 100 shares with the remaining open shares record to recreate the original purchase. Unsold records are only recombined with open shares records when the symbol, date, and price match. Thus, the only way an incorrect recombination can occur is if you made multiple purchases on the same date at the same price. After deleting the closed shares record, you return to the Closed Shares Log, and the record after the deleted record is highlighted. Capital Gainz Users Manual 123 10.2.4 Delete Range The Del Range function key allows you to delete the displayed range of closed shares records, based on the previously entered date range. You will always be prompted for confirmation, regardless of the Confirm Delete global setting, since many records could be affected. You will also be given the option of 'unselling' the shares, as described in the section on deleting closed shares records. The corresponding price history entries are not deleted. After the deletion, you return to the Log Maintenance Menu. 10.2.5 Closed Shares Detail Report The Closed Shares Detail Report can be printed for the displayed security and selected date range. See page 162 for the format of this report. 10.2.6 Enter Local Symbol If you hit the Symbol function key, you are taken to the symbol entry field at the top of the table. The is the same as hitting the ESC key. Capital Gainz Users Manual 124 10.3 Distribution Log [[Screen not in online version.]] The Distribution Log requires you to enter the symbol of the local security whose distribution records you want to view. If you leave this entry blank, or enter an invalid name, the Local Security Lookup Table pops up. This table is described on page 70. After you enter a valid security symbol, the Distribution Log shows the security's name and the current date or the specified date range. The distribution records are sorted in ascending order by date, and show: o The distribution date. o The type of distribution. o The amount of the distribution. o The per share amount of the distribution. Return of principal distributions are treated as sales in order to reduce basis. Thus, they are not shown here. At the bottom of the table, these values are totaled for the specified date range. The function keys at the bottom of the screen are: o INS:Add - bring up the Record Distribution Form to record a distribution. o ENTER:Change - bring up the Record Distribution Form to change the highlighted distribution record. o DEL:Delete - delete the highlighted distribution record, after first displaying it in the Record Distribution Form. o F2:Del Range - delete the displayed range of distribution records. o F3:Report - generate the Distribution Detail Report for the displayed local security and date range. o F4:Symbol - go to the Symbol field to enter a different symbol. o ESC:Exit - go to the symbol field, or exit from the Distribution Log, returning to the Log Maintenance Menu, if you are on the Symbol field. Capital Gainz Users Manual 125 10.3.1 Add a Distribution Record If you hit the INS key to add a distribution record, the Record Distribution Form pops up. The fields in this form are described in detail beginning on page 95. However, you can't go to the Buy Shares Form or Sell Shares Form, and can't reinvest a distribution or sell shares to cover a fee. Adding a distribution record is the same as recording a distribution. However, while the Record Distribution Form is accepted repeatedly when reached through the Activity Menu, it is only accepted once when brought up from the Distribution Log. A price history entry for the distribution's per share amount is added based on the entered amount and date. See 108 for detailed information on conditions for adding a record to the Price History File. After entering the distribution, you are returned to the Distribution Log, and the new record is highlighted. 10.3.2 Change a Distribution Record If you hit the ENTER key to change the highlighted distribution record, the Record Distribution Form pops up. The fields in this form are described in detail beginning on page 95. You can't go to the Buy Shares Form or Sell Shares Form. The fields in the Record Distribution Form are initialized to the record's current values. You can change all of the fields except the security symbol. If you changed the per share amount and a corresponding price history entry exists, it's deleted and the new per share amount is added. See page 108 for detailed information on conditions for adding a record to the Price History File. After changing the distribution record, you return to the Distribution Log, and the changed record is highlighted. 10.3.3 Delete a Distribution Record If you hit the DEL key to delete the highlighted distribution record, the Record Distribution Form pops up. The fields in this form are described in detail beginning on page 95. The fields in the Record Distribution Form are initialized to the record's current values. Capital Gainz Users Manual 126 If a corresponding price history entry exists, it's deleted. After deleting the distribution record, you return to the Distribution Log, and the record after the deleted record is highlighted. 10.3.4 Delete Range The Del Range function key allows you to delete the displayed range of distribution records, based on the previously entered date range. You will always be prompted for confirmation, regardless of the Confirm Delete global setting, since many records could be affected. Any corresponding price history entries are not deleted. After the deletion, you return to the Log Maintenance Menu. 10.3.5 Distribution Detail Report The Distribution Detail Report can be printed for the displayed local security and selected date range. See page 164 for the format of this report. 10.3.6 Enter Local Symbol If you hit the Symbol function key, you are taken to the symbol entry field at the top of the table. This is the same as hitting the ESC key. Capital Gainz Users Manual 127 Capital Gainz Users Manual 128 Chapter 11 - Portfolios [[Screen not in online version.]] The Portfolio Table, brought up from the Main Menu, shows a single line of information for each portfolio, with portfolios listed in order by ID. There is a checkmark displayed to the left of the currently open portfolio. When you start Capital Gainz for the first time, a portfolio with an ID of 001, named '<<Default Portfolio>>', is created. The values displayed for each portfolio are: o Portfolio ID - a number between 1 and 999. o Portfolio name, which will be displayed on forms and reports that are portfolio specific. If you used the Show Values function key, you are also shown: o Current value of portfolio holdings. o Current gain/loss of portfolio holdings. o Total value of holdings in all portfolios. o Total gain/loss of holdings in all portfolios. At the bottom of the Portfolio Table is a horizontally scrollable row of functions. Using function keys, you can: o ENTER:Make Current - makes the highlighted portfolio the current portfolio. A checkmark is displayed to the left of the currently open portfolio. o INS:Add - add a portfolio. o F2:Change - change the highlighted portfolio. o DEL:Delete - delete the highlighted portfolio. o ESC:Exit - exit from the table, returning to the Main Menu. o F3:Tax Report - generate the Schedule B and D-1 reports for the highlighted portfolio. o F4:Portfolio Summary - generate the Portfolio Summary Report. o F5:Portfolio Detail - generate the Portfolio Detail Report for the Capital Gainz Users Manual 129 highlighted portfolio. o F6:Portfolio Allocation - generate the Allocation Report for the highlighted portfolio. o F8:Show Values - toggles showing/not showing portfolio values. Each of these functions is described below. 11.1 Make Current By hitting the ENTER key, you make the highlighted portfolio the current portfolio. This opens the portfolio for buy, sell, and distribution activity. All portfolio specific forms and reports show the current portfolio, if you defined more than one portfolio. The current portfolio is distinguished in the Portfolio Table by a checkmark to the left of its ID. The current portfolio is 'remembered' between sessions, so whenever you start up Capital Gainz, the last portfolio that you had opened automatically becomes the current portfolio. 11.2 Add a Portfolio [[Screen not in online version.]] The Portfolio Form is brought up to add a portfolio when you hit the INS key while viewing the Portfolio Table. The fields in the Portfolio Form are: o (Required) The ID for the portfolio. This is a value from 1 to 999, and is used as part of the filename for the local security, open shares, closed shares, and distributions files. Capital Gainz displays the first unused ID. o (Optional) The portfolio name. This name is shown on all portfolio specific forms and reports. o (Optional) Up to 3 lines of descriptive text for the portfolio. This description is only used on the Portfolio Summary Report. If you leave a line blank and hit ENTER, the other lines are skipped. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the portfolio record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. Capital Gainz Users Manual 130 o Form Reject - exit immediately, back to the Portfolio Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. After completing the form, the portfolio record is added and the corresponding local security, open shares, closed shares, and distribution files are created. You return to the Portfolio Table, and the just added portfolio is highlighted and becomes the current portfolio. 11.3 Change a Portfolio The Portfolio Form is brought up to change the highlighted portfolio when you hit the F2 key while viewing the Portfolio Table. The Portfolio Form, described in the Add a Portfolio section, is initialized to the current values of the portfolio to be changed. Function keys at the bottom of the screen are: o Form Accept - accept all entries and update the portfolio record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Portfolio Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. After completing the form, the portfolio record is updated. If you changed the portfolio's ID, the local security, open shares, closed shares, and distribution files are renamed accordingly. Confirmation is required regardless of the Confirm Update global setting, since many records could be affected. You return to the Portfolio Table, and the just changed portfolio is highlighted. 11.4 Delete a Portfolio The Portfolio Form is brought up to delete the highlighted portfolio when you hit the DEL key while viewing the Portfolio Table. The Portfolio Form, described in the Add a Portfolio section, is initialized to the current values of the portfolio to be deleted. The portfolio record is deleted, as are the portfolio's local security, open shares, closed shares, and distribution files. Confirmation is required regardless of the Confirm Delete global setting, since many records could be affected. When you're finished with the Portfolio Form, you return to the Portfolio Table, and the Capital Gainz Users Manual 131 portfolio after the one just deleted is highlighted. 11.5 Tax Report The Schedule B and Schedule D-1 Reports for the highlighted portfolio are available via a function key on the Portfolio Table. See page 155 for descriptions of these reports. 11.6 Portfolio Summary The Portfolio Summary Report, similar in format to the Portfolio Table, is available via a function key on the Portfolio Table. See page 149 for a description of this report. 11.7 Portfolio Detail The Portfolio Detail Report for the highlighted portfolio, similar in format to the Local Security Table, is available via a function key on the Portfolio Table. See page 152 for a description of this report. 11.8 Portfolio Allocation The Allocation Report for the highlighted portfolio. See page 154 for a description of this report. 11.9 Show Values Capital Gainz can calculate and display the value of your portfolios. However, if you have large portfolios, or many portfolios, this process may be slow. Use the Show Values function key to toggle turning the value calculations on and off. The default is not to show the values. Capital Gainz Users Manual 132 Chapter 12 - Global Securities [[Screen not in online version.]] The Global Security Table, brought up from the Main Menu, shows global securities, listed in alphabetical order by global security symbol. The values displayed for each security are: o Global security symbol. o Global security name. o Security type. o The most recent price recorded in the Price History File. o The current yield. At the bottom of the Global Security Table is a horizontally scrollable row of functions. Using function keys, you can: o ENTER:Select - select the highlighted security, if called from a form looking up a global security symbol. o INS:Add - add a security. o F2:Change - change the highlighted security. o DEL:Delete - delete the highlighted security. o ESC:Exit - exit from the table, returning to the Main Menu. o F3:Price History - view the price history table for the highlighted security. o F4:Price Update - update the prices of all global securities in the portfolio, entering the information from the screen or a file. o F5:Report - generate the Global Securities Report. Each of these functions is described below. Capital Gainz Users Manual 133 12.1 Add a Global Security [[Screen not in online version.]] The Global Security Form is brought up to add a global security when you hit the INS key while viewing the Global Security Table. The fields in the Global Security Form are: o (Required) The global symbol for the security. For stocks, you probably want to enter the symbol used in the newspaper's stock exchange listings. You use this symbol to tie local securities to global securities. o (Required) The global security name. The security name is used on many other forms, tables, and reports by tracing the link from the local security to the global security. o (Required) The broker/investment company responsible for selling and/or holding the shares. For stocks and bonds, this will be a broker or the actual company. For mutual funds, this will be the mutual fund investment company or a broker. This name provides a link to the Broker/Investment Company File, which contains addresses and phone numbers. If you leave this entry blank or enter an invalid name, the Broker/Investment Company Lookup Table pops up. This table is described on page 104. A discussion of how broker/investment companies are related to local and global securities appears on page 22. o (Optional) Account number. For stocks and bonds, this will be your brokerage account number or company dividend reinvestment plan number. For mutual funds, this will be your fund's account number or a brokerage account number. A discussion of how account numbers are related to local and global securities begins on page 22. o (Required) Security type. Entering a blank or invalid security type causes the Security Type Lookup Table to pop up. This table is described below. After entering or selecting a security type, the security type's description is displayed. o (Optional) Dividends/Year or Interest/Year. This is the number of times this security is expected to distribute dividends or interest - not the amount of the dividends or interest. Most securities make annual, bi-annual, quarterly, or monthly payments. This value is extremely important in calculating an accurate yield for the security. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the global security Capital Gainz Users Manual 134 record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Global Security Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. o F3:Toggle Dividends/Interest - this key toggles whether the security distributes dividends or interest. The 'Dividends/Year' field label will change to 'Interest/Year', or vice-versa. After completing the form, the global security record is added. You return to the Global Security Table, and the just added global security is highlighted. 12.1.1 Security Types [[Screen not in online version.]] The Security Type Lookup Table is brought up automatically if you enter a blank or invalid security type code. Hitting ENTER selects the highlighted security type. Capital Gainz provides many security types to choose from. Some are as general as 'Mutual Fund', while others are as specific as 'Small Company Stock Fund'. You can stick with the broad classes or use the narrower ones - it's up to you. A key attribute of the security types is their status with regards to taxing interest/dividends. All security types with 'tax free' in their names are treated as distributing tax-free dividends or interest on the Schedule B Report. Capital Gainz offers the following security types, divided into categories: 12.1.1.1 Stock Types o Stock - any type of stock. o Small Company Stock - a small company stock, typically traded in the over-the-counter market or on the American Stock Exchange (AMEX). o Large Company Stock - a large company stock, typically traded on the New York Stock Exchange (NYSE). o Foreign Stock - a stock that trades on a foreign exchange, or on a Capital Gainz Users Manual 135 local exchange with American depository receipts (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 or the Dow Jones Industrial Average. 12.1.1.2 Stock Fund Types o Stock Fund - a mutual fund investing in any type of stocks. o Income Stock Fund - a mutual fund investing in income-oriented stocks (similar to Large Company Stock Fund). o Growth Stock Fund - a mutual fund investing in growth-oriented stocks (similar to Small Company Stock Fund). o Large Company Stock Fund - a mutual fund investing in large company stocks (similar to Income Stock Fund). o Small Company Stock Fund - a mutual fund investing in small company stocks (similar to Growth Stock Fund). o Foreign Stock Fund - a mutual fund investing in foreign company stocks. o Global Stock Fund - a mutual fund investing in both local and foreign company stocks. o Stock Index Fund - a mutual fund mirroring one of the major stock indices, such as the S&P 500. o Gold/Mining Stock Fund - a mutual fund investing in gold or other precious mineral mining companies. o Sector Fund - a mutual fund specializing in a particular industry segment, such as health care or utilities. o Closed-End Stock Fund - a closed-end, as opposed to open-end, mutual fund investing in stocks. Usually trades like a stock on one of the exchanges. Capital Gainz Users Manual 136 12.1.1.3 Bond Types o Bond - any type of bond. o Long Term Bond - a long term corporate bond, typically maturing in 15 to 25 years. o Medium Term Bond - a medium term corporate bond, typically maturing in 5 to 15 years. o Short Term Bond - a short term corporate bond, typically maturing in 1 to 5 years. o Tax Free Municipal Bond - a bond issued by a state agency or authority, dividends are usually free from federal tax, and possibly from state and local taxes. Dividends from this security type are assumed to be tax free when generating the Schedule B Report. o Treasury Bill - 13, 26, or 52 week treasury obligation, generally exempt from state and local taxes. o Treasury Note - treasury obligation ranging from 1 to 10 years, generally exempt from state and local taxes. o Treasury Bond - treasury obligation ranging from 10 to 25 years, generally exempt from state and local taxes. o Federal Agency Bond - bond issued and/or guaranteed by federal or pseudo-federal agencies, such as the Federal National Mortgage Association (Fannie Mae) or the Government National Mortgage Association (Ginnie Mae). o Foreign Bond - a foreign corporation bond. o Convertible Bond - corporate bond conditionally convertible into stock. o Bond Index - a bond index, such as the Shearson Lehman Aggregate Bond Index. 12.1.1.4 Bond Fund Types o Bond Fund - a mutual fund investing in any type of bonds. o Long Term Bond Fund - a mutual fund investing in long term corporate bonds, typically with an average maturation date of 10 years or more. Capital Gainz Users Manual 137 o Medium Term Bond Fund - a mutual fund investing in medium term corporate bonds, typically with an average maturation date of about 5-7 years. o Short Term Bond Fund - a mutual fund investing in short term corporate bonds, typically with an average maturation date of 1-3 years. o Tax Free Bond Fund - a mutual fund investing in bonds free of federal taxes, such as municipal bonds. Sometimes dividends from these funds are also free of state and local taxes. Dividends from this security type are assumed to be tax free when generating the Schedule B Report. o Tax Free Long Term Bond Fund - a mutual fund investing in long term tax free bonds, typically with an average maturation date of 10 years or more. Sometimes dividends from these funds are also free of state and local taxes. Dividends from this security type are assumed to be tax free when generating the Schedule B Report. o Tax Free Medium Term Bond Fund - a mutual fund investing in medium term tax free bonds, typically with an average maturation date of 5-7 years. Sometimes dividends from these funds are also free of state and local taxes. Dividends from this security type are assumed to be tax free when generating the Schedule B Report. o Tax Free Short Term Bond Fund - a mutual fund investing in short term tax free bonds, typically with an average maturation date of 1-3 years. Sometimes dividends from these funds are also free of state and local taxes. Dividends from this security type are assumed to be tax free when generating the Schedule B Report. o Bond Index Fund - a mutual fund mirroring one of the major bond indices, such as the Shearson Lehman Aggregate Bond Index. o Government Bond Fund - an aggregate mutual fund investing in Treasury Bonds, Treasury Bills, Treasury Notes, municipal bonds, and/or federal agency bonds. o Federal Agency Bond Fund - a mutual fund investing in bonds issued and/or guaranteed by federal or pseudo-federal agencies, such as the Federal National Mortgage Association (Fannie Mae) or the Government National Mortgage Association (Ginnie Mae). o Foreign Bond Fund - a mutual fund investing in corporate bonds from foreign countries. o Global Bond Fund - a mutual fund investing in local and foreign bonds. Capital Gainz Users Manual 138 o High Yield Bond Fund - a mutual fund investing in lower-rated, or 'junk' bonds. o Closed-End Bond Fund - a closed-end, as opposed to open-end, mutual fund investing in bonds. Usually trades like a stock on one of the exchanges. o Convertible Bond Fund - a mutual fund investing in corporate bonds conditionally convertible into stock. o Unit Trust - like a bond fund, except the bonds are typically held to maturity. Since a unit trust is not actively managed, there are typically no management fees. 12.1.1.5 Cash Types These types usually maintain a constant price. o Money Market Fund - a mutual fund investing in short term money market instruments maturing in one year or less. o Tax Free Money Market Fund - a mutual fund investing in short term money market instruments maturing in one year or less and free of federal taxes. Sometimes dividends from these funds are also free of state and local taxes. Dividends from this security type are assumed to be tax free when generating the Schedule B Report. o Certificate of Deposit - funds held for a specified period, paying a fixed interest rate. Usually purchased directly from a bank. o Cash Equivalent - cash, checking account, or savings account holdings. o Tax Free Cash Equivalent - tax free cash equivalents. 12.1.1.6 Other Types o Other - any other type of non-mutual fund security. o Tax Free Other - any other type of tax free non-mutual fund security. o Market Index - a mixed stock, bond, or other security type index. o Partnership - a general or limited partnership. Capital Gainz Users Manual 139 12.1.1.7 Other Fund Types o Mutual Fund - any other type of mutual fund. o Tax Free Mutual Fund - any other type of tax free mutual fund. o Portfolio Allocation Fund - a mutual fund that splits investing among market segments such as stocks, bonds, and gold. The weightings can be fixed or dynamic. o Balanced Fund - a mutual fund investing in stocks and bonds. 12.1.2 Broker/Investment Company Lookup The Broker/Investment Company Lookup Table is brought up automatically if you enter an invalid broker/investment company name. This table is described on page 104. 12.2 Change a Global Security The Global Security Form is brought up to change the highlighted global security when you hit the ENTER key while viewing the Global Security Table. The Global Security Form, described on page 134, is initialized to the current values of the global security to be changed. Function keys at the bottom of the screen are: o Form Accept - accept all entries and update the global security record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Global Security Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. o F2:Price Update - enter a date/price value for this security. o F3:Toggle Dividends/Interest - this key toggles whether the security distributes dividends or interest. The 'Dividends/Year' field label will change to 'Interest/Year', or vice-versa. After completing the form, the global security record is updated. If you changed the security's symbol, all the local security records linked to this global security are also changed. Confirmation is required regardless of the Confirm Update global setting, since many Capital Gainz Users Manual 140 records could be affected. You return to the Global Security Table, and the just changed global security is highlighted. 12.2.1 Price Update Choosing the Price Update function key on the Global Security Form brings up the Price Form to record a price/date for the global security. See the Add a Price History Entry section on page 108 for details. 12.3 Delete a Global Security The Global Security Form is brought up to delete the highlighted global security when you hit the DEL key while viewing the Global Security Table. The Global Security Form, described on page 134, is initialized to the current values of the security to be deleted. The global security record is deleted. However, all related local securities are NOT deleted. Instead, the global symbol field in the local 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 Global Security Form, you return to the Global Security Table, and the security after the one just deleted is highlighted. 12.4 Price History When you choose the Price History function key from the Global Security Table, you are asked if you want to see all dates or a range of dates. (The Dates Form is described on page 117) Then, the Price History Table for the highlighted global security and requested range of dates is shown. The Price History Table, and adding/changing/deleting price history entries, is described beginning on page 106. 12.5 Price Update After selecting the Price Update function key, you are asked if you want to update security prices from the screen or from a file. The price update process is described beginning on page 111. 12.6 Report Choosing the Report function key from the Global Security Table generates the Global Security Report for the highlighted security. See page 151 for a description of this report. Capital Gainz Users Manual 141 Capital Gainz Users Manual 142 Chapter 13 - Broker/Investment Companies [[Screen not in online version.]] You bring up the Broker/Investment Company Table from the Main Menu. This table is sorted by broker/investment company name, and the three lines of information show each broker/investment company's name, phone number, and address. At the bottom of the Broker/Investment Company Table is a row of functions. Using function keys, you can: o INS:Add - add a broker/investment company. o ENTER:Change - change the highlighted broker/investment company. o DEL:Delete - delete the highlighted broker/investment company. o ESC:Exit - exit from the table, returning to the Main Menu. o F2:Report - generate the Broker/Investment Company Report. 13.1 Add a Broker/Investment Company [[Screen not in online version.]] The Broker/Investment Company Form is brought up to add a broker/investment company when you hit the INS key while viewing the Broker/Investment Company Table. The Broker/Investment Company Form accepts: o (Required) Name - the name of the broker/investment company o (Optional) Address - the street address of the broker/investment company. Two lines of address are provided, so you could include a specific individual broker's name on the first address line o (Optional) City - the broker/investment company's city o (Optional) State - the two letter abbreviation for the broker/investment company's state, which is not validated o (Optional) Zip - the broker/investment company's 5 or 9 character zip code, which is not validated o (Optional) Phone # - the broker/investment company's phone number Capital Gainz Users Manual 143 Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the broker/investment company record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Broker/Investment Company Table. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. After completing the form, the broker/investment company record is added. You return to the Broker/Investment Company Table, and the just added broker/investment company is highlighted. You may want to define a 'dummy' broker/investment company to be associated with non-mutual fund global securities. You would use the real broker/investment company for the local security. For a discussion, see page 22. 13.2 Change a Broker/Investment Company The Broker/Investment Company Form is brought up to change the highlighted broker/investment company when you hit the ENTER key while viewing the Broker/Investment Company Table. The fields in the Broker/Investment Company Form, described in detail on page 143, are initialized to the record's current values. Function keys at the bottom of the screen are: o Form Accept - accept all entries and update the broker/investment company record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Activity Menu. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. After completing the form, the broker/investment company record is updated. If you changed the broker/investment company name, all local and global securities associated with the broker/investment company are updated to reflect the change. Confirmation is required regardless of the Confirm Update global setting, since many records could be affected. You return to the Broker/Investment Company Table, and the just changed broker/investment company is highlighted. Capital Gainz Users Manual 144 13.3 Delete a Broker/Investment Company The Broker/Investment Company Form is brought up to delete the highlighted broker/investment company when you hit the DEL key while viewing the Broker/Investment Company Table. The fields in the Broker/Investment Company Form, described on page 143, are initialized to the record's current values. The broker/investment company record is deleted. All of the associated local and global security records' broker/investment company name fields are cleared. When you're finished with the Broker/Investment Company Form, you are returned to the Broker/Investment Company Table, and the record after the deleted record is highlighted 13.4 Report The Report function key prints out the Broker/Investment Company Report. This report is described in detail beginning on page 150. Capital Gainz Users Manual 145 Capital Gainz Users Manual 146 Chapter 14 - Reports [[Screen not in online version.]] All Capital Gainz reports are available from the Report Menu, except the Open Information for Shares Sold Report, described on page 77. As indicated below, reports may also be available from certain tables. Function keys at the bottom of the screen are: o ESC - quit the Activity Menu, and return to the Main Menu. o F10:DOS - suspend Capital Gainz and invoke the DOS Shell. Reports use the following global settings: o Append Report: if 'YES', a report directed to an existing DOS file is appended to the file. If 'NO', any existing DOS file is overwritten without warning. o Lines Per Page: the number of printed lines on each page. o Line Draw Chars: if 'YES', then the extended ASCII line drawing characters are used. If your printer does not support these characters, enter 'NO' to use the substitute characters '-' and '='. The Report Menu is divided into three sections: o Reports for all portfolios. o Reports for the current portfolio or for all portfolios. o Reports for the current portfolio. Options for each section and for each report are described below. After specifying options and selecting a report, you can choose to send the output to the screen, the printer, or a DOS file. After viewing a report on the screen, you can send it to the printer or a DOS file. A progress message is displayed while a report is printing. As this message indicates, you can abort printing by hitting the ESCAPE key. An 'end-of-report' marker is added to the end of each report, and Capital Gainz Users Manual 147 all reports end with a formfeed. Make sure you line up your paper before printing, as Capital Gainz does not output an initial formfeed. 14.1 Select Device You can choose to send the report to the screen, the printer, or to a file. Highlight your choice and hit ENTER, or just hit the key matching the first character in your selection. 14.1.1 Print to the Screen [[Screen not in online version.]] If you choose to print to the screen, the report is generated and then displayed in a scrollable window on the screen. The functions keys at the bottom of the screen are: o UP ARROW:Up 1 Line - scroll the screen up one line. o DOWN ARROW:Down 1 line - scroll the screen down one line. o PgUp:Up 1 Screen - scroll the screen up one full screen. o PgDn:Down 1 Screen - scroll the screen down one full screen. o CTRL-PgUp:Top - go to the beginning of the report. o CTRL-PgDn:Bottom - go to the end of the report. o F2:Print - redirect the report to a different device. o F3:Go To Page - specify a page number. This is described below. o ESC:Exit - return to the Report Menu. If you already have a preferred file viewer, you can use it instead of Capital Gainz' internal file viewer. Simply specify the pathname and options of the file viewer you want to use in the User Settings Form, and Capital Gainz will use that viewer when sending reports to the screen. The internal Capital Gainz file viewer is pretty basic - you can scroll up and down, and go to specific page numbers. There are no search, cut-and-paste, or editing capabilities. Page 170 has a detailed discussion of the pros and cons of internal and external files viewers. Capital Gainz Users Manual 148 14.1.1.1 Go To Page If you choose the Go To Page function key while viewing a report, the Enter Page Form pops up for you to type in a number: [[Screen not in online version.]] Capital Gainz searches for the page number, and displays the top of the specified page if it's found. For long reports, this may be slow. To speed up specific page access for the users manual, Capital Gainz uses a special index file generated at installation time. 14.1.2 Print to a File [[Screen not in online version.]] If you choose to print to a file, enter the name of the DOS file to print to in the File Form. The Append Report global setting determines if the report is appended to the file or overwrites the file. A temporary file, CAPGNZ.TMP, is sometimes used when printing to a file. 14.1.3 Print to the Printer When you print to the printer, Capital Gainz directs the output to the default printer port, usually your computer's first parallel printer port. If your printer is connected to a different port, use the DOS MODE command to change the default printer or to redirect printer output. Or, you can send reports to a DOS file and print them later. 14.2 Reports For All Portfolios The first section in the Report Menu contains reports that cover all portfolios. Each report is discussed below. 14.2.1 Portfolio Summary Report [[Screen not in online version.]] The Portfolio Summary Report, also available from the Portfolio Table, is similar to the Portfolio Table. Portfolios are listed in numeric order by portfolio ID, and for each portfolio this report shows: o The portfolio ID. o The portfolio name. Capital Gainz Users Manual 149 o The portfolio description. o The current value of all holdings in the portfolio. o The current gain/loss of all holdings in the portfolio. At the end of the report, the following totals are shown: o The total value of all portfolios. o The total gain/loss of all portfolios. 14.2.2 Broker/Investment Company Report The Broker/Investment Company Report, also available from the Broker/Investment Company Table, gives you the option of subtotalling all commissions and fees over a specified period. [[Screen not in online version.]] 14.2.2.1 Without Subtotals [[Screen not in online version.]] Without subtotalling, the Broker/Investment Company Report is similar to the Broker/Investment Company Table. Brokers/investment companies are listed in alphabetical order by name, and this report shows: o The name of the broker/investment company. o The phone number of the broker/investment company. o The address of the broker/investment company. o The city, state, and zip code of the broker/investment company. 14.2.2.2 With Subtotals [[Screen not in online version.]] If you choose to subtotal the commissions and fees in the Broker/Investment Company Report, the Date Form (described on page 117) pops up for you to select a date range. This report shows: o The name of the broker/investment company. o The phone number of the broker/investment company. Capital Gainz Users Manual 150 o The address of the broker/investment company. o The city, state, and zip code of the broker/investment company. For each portfolio holding a local security with a given broker/investment company: o The portfolio ID. o The portfolio name. o The total commissions and fees paid over the period. For each local security in the portfolio: o The account number for the local security. o The local security symbol. o The associated global security name. o The buy and sell commissions over the period. o The fees paid over the period. 14.2.3 Global Securities Report The Global Securities Report, also available from the Global Securities Table, gives you the option of listing local securities linked to each global security. [[Screen not in online version.]] 14.2.3.1 Without Local Securities [[Screen not in online version.]] Without listing associated local securities, the Global Security Report is similar to the Global Security Table. Global securities are listed in alphabetical order by global security symbol, and for each security this report shows: o The global security symbol. o The security type. o The last recorded price. o The current yield. Capital Gainz Users Manual 151 14.2.3.2 With Local Securities [[Screen not in online version.]] If you requested to list local securities linked to each global security, this report shows: o The global security symbol. o The security type. o The last recorded price. o The current yield. For each portfolio containing a local security linked to the global security, you are shown: o The portfolio ID. o The portfolio name. o The symbols of all local securities in the portfolio that are linked to the global security, 10 per line. 14.2.4 User Settings Report [[Screen not in online version.]] The User Settings Report shows the current User Settings and colors. 14.3 Reports For Current/All Portfolios The reports in the second section cover an entire portfolio, and can be printed for just the current portfolio or for all portfolios. The function key that applies to this section is: o F2:Toggle All/Current Portfolio - toggles the selection of current or all portfolios, as shown on the top line of this section. 14.3.1 Portfolio Detail Report The Portfolio Detail Report, also available from the Portfolio Table and the Local Securities Table, gives you the option of subtotalling by broker/investment company. Also, you can print it in Capital Gainz Users Manual 152 brief or long formats, where the brief format prints a single line per local security and the long format prints four lines per local security. [[Screen not in online version.]] 14.3.1.1 Without Subtotals [[Screen not in online version.]] Without subtotalling by broker/investment company, the Portfolio Detail Report is similar to the Local Securities Table. In this example, the long format was chosen. For an example of the brief format, see the example in the next section. The portfolio and portfolio ID are printed at the top of each page. For each portfolio requested, local securities are listed in alphabetical order by local security symbol, and for each security this report shows: o The local security symbol. o The associated global security's name, plus '(IRA)' if you specified that the security was held in an IRA or other tax deferred program o The last recorded price and date. o The local security's account number. o The current number of open shares. o The current yield. o The average purchase price. o The cost of the current open shares. o The value of the current open shares, based on the last recorded price. o The unrealized gain or loss on the current open shares. The following totals are calculated and listed at the end of each portfolio: o The total current value of all local securities in the portfolio. o The total unrealized gain or loss of all local securities in the portfolio. Capital Gainz Users Manual 153 14.3.1.2 With Subtotals [[Screen not in online version.]] In this example, the brief format was chosen along with subtotalling by broker/investment company. The portfolio and portfolio ID are printed at the top of each page. For each portfolio requested, and for each broker/investment company with holdings in the portfolio, local securities are listed in alphabetical order by local security symbol. For each security this report shows: o The local security symbol. o The last recorded price. o The current yield. o The current number of open shares. o The value of the current open shares, based on the last recorded price. o The unrealized gain or loss on the current open shares. The following subtotals are calculated and listed at the end of each broker/investment company: o The total current value of all local securities associated with the broker/investment company. o The total unrealized gain or loss of all local securities associated with the broker/investment company. The following totals are calculated and listed at the end of each portfolio: o The total current value of all local securities in the portfolio. o The total unrealized gain or loss of all local securities in the portfolio. 14.3.2 Allocation Report [[Screen not in online version.]] The Allocation Report, also available from the Local Securities Table, gives you a percentage breakdown by security type for each of your portfolios. The portfolio ID and name are printed at the top of Capital Gainz Users Manual 154 the page, and then for each portfolio the report shows: o The current value of all holdings in the portfolio for each security type. o The percentage of the holdings in each security type, based on the total value of the portfolio. At the end of each portfolio, the following security type classes are summed and broken down percentage-wise: o Cash security types, such as money market funds. o Stocks. o Stock Funds - stock mutual funds. o Bonds - bonds and other fixed income securities, other than cash equivalents. o Bond Funds - bond and other fixed income mutual funds, other than cash equivalents. o Other - securities that can't be classified as stocks or as bonds o Other Funds - mutual funds that can't be classified as only stock funds or bond funds, usually holding some of each. o Total portfolio value. Thus, you can see how your portfolio is weighted, and compare this to your perception of the stock and bond markets' directions. 14.3.3 Schedule B & D-1 Reports The Schedule B and D-1 Reports are combined, as you probably want to generate both of them at the same time. An additional report is added to the end of the Schedule B report, listing any fees paid for the year since they may be tax deductible. After choosing these reports, you are asked for the year to calculate them for. The default displayed is for the previous year. You also have the option of rounding the values off to the nearest dollar. [[Screen not in online version.]] These forms may not be identical to the actual tax forms (the 1990 forms were used as the model). Thus, they are not legal substitutes for the actual forms. However, they do provide data easily transferrable to the actual Schedule B and Schedule D Forms. Capital Gainz Users Manual 155 Any securities that you said were tax exempt are skipped completely. Thus, only securities held in retirement plans, like IRAs, should be marked as tax exempt. 14.3.3.1 Schedule B Report [[Screen not in online version.]] The Schedule B Report correctly segregates dividends received from securities classified as tax free security types. Securities classified as one of the tax-free security types include a comment as such. Also, any capital gains distributions are noted. For each portfolio, the Schedule B Report includes: o Part I Interest Income - interest recorded for local securities. o Part II Dividend Income - dividend and capital gain distributions, and return of principal for local securities. Capital gain distributions and return of principal are subtracted back out. 14.3.3.2 Fee Report [[Screen not in online version.]] The Fee Report is not a tax form, but reports investment fees that may be tax-deductible. For each portfolio, this report shows the following for each fee record in the specified year: o The local security symbol. o The associated global security's name. o The date the fee was paid. o The amount of the fee. o Any notes recorded with the fee. 14.3.3.3 Schedule D-1 Report [[Screen not in online version.]] Since Capital Gainz does not contain a lot of the information requested in Schedule D, it generates the Schedule D-1 Report instead. In this report, purchase and selling commissions are added to the purchase basis, regardless of your user settings data. Short sales that have not been covered are not included in this report. For each Capital Gainz Users Manual 156 portfolio, the Schedule D-1 Report includes: o Part I Short-term Capital Gains and Losses - short term realized gains and losses. o Part II Long-term Capital Gains and Losses - long term realized gains and losses. Each sale shows the local security symbol and the number of shares involved. 14.4 Reports For Current Portfolios The reports in the third section cover the current portfolio only, and they can be printed for all or selected securities and for all or a range of dates. The function keys that apply to this section are: o F3:Select Securities - select local securities to include in the report. This function is described below. o F4:Select Date Range - limit the report to a range of dates. 14.4.1 Select Securities [[Screen not in online version.]] The Select Local Securities Table allows you to tag securities for which information will be printed. Hitting RETURN 'toggles' the tag on the highlighted security - the local security is tagged or cleared, depending on its current state. After hitting return and toggling the tag, the next security is highlighted. 14.4.2 Select Date Range You can limit the report to a range of dates. The Date Range Form is described on page 117. 14.4.3 Activity Summary Report [[Screen not in online version.]] The Activity Summary Report, also available from the Local Security Table, shows a wealth of information on your investments. It's divided into three section, and the top section shows: o Open Activity Summary - total and short term totals are shown for shares purchased during the specified period, and not sold as of the current date. This information mirrors the totals at the end of Capital Gainz Users Manual 157 the Open Shares Detail Report, described on page 161. o Closed Activity Summary - total and short term totals are shown for shares sold during the specified period. This information mirrors the totals at the end of the Closed Shares Detail Report, described on page 162. o Distribution Activity Summary - total and short term totals are shown for distributions during the specified period. This information mirrors the totals at the end of the Distribution Detail Report, described on page 164. The second section of the Activity Summary Report shows the total return of the global security over the period. This section shows how a single share of the security fared, using the beginning price, ending price, and distributions per share from the Price History File. Included are: o The specified beginning and ending dates. If you requested all dates, the earliest and most recent dates found in the Price History File are shown. o Begin Price - the price found with the earliest date within the specified period in the Price History File for this global security. o End Price - the price found with the latest date within the specified period in the Price History File for this global security. o Distr/Share - the distributions per share found in the Price History File for this global security, summed over the specified period. o Shares Bought - each distribution per share found in the Price History File, divided by the next share price found in the file, and summed over the period. o Total Return - the total return of a single share, if held from the beginning date to the ending date and assuming reinvestment of distributions. o Annual Percentage Rate - the simple yearly compounded rate of return for the security, based on the dates shown. The third section evaluates your specific performance over the period: o Start - shows the earliest date found in the Price History File for Capital Gainz Users Manual 158 the specified range, and the corresponding price. Open totals are shown for shares owned at that time, even if you sold them later. o Buy Activity Over Period - shows the total purchases made during the period, even if you sold them later. o Distributions Over Period - shows the total distributions during the period. o Sell Activity Over Period - shows the total selling activity during the period. o End - shows the latest date found in the Price History File for the specified range, and the corresponding price. Open totals are shown for shares owned at that time, even if you sold them later. The following figures are used to calculate your performance: o The date range specified, or the earliest and latest dates found in the Price History File if you requested all dates. o The value of shares open at the end of the period. o The amount received from sales during the period, less selling commission. o Distributions over the period, less fees paid. o The value of open shares at the start of the period, plus the amount of purchases and purchase commissions over the period. The final figure shows the total ending value, plus the sale proceeds received, plus distributions received, less the amount at the start of the period. This is your total gain or loss over the period. The annual percentage rate figure is over the date range shown. If you specified more than one local security, the Activity Summary Report also generates grand totals. For more information on calculations used by Capital Gainz, see Chapter 18. 14.4.4 Price History Report [[Screen not in online version.]] The Price History Report is similar in format to the Price History Table. It shows the price history associated with a global security, which is associated with zero or more local securities. At the top of the page is: Capital Gainz Users Manual 159 o The local security symbol and name. o Today's date if no date range was chosen, otherwise the entered date range. Price history records are interleaved with distributions and stock splits, sorted in descending date order. For price history records, the report shows: o The date of the price. o The price. For distribution records, the report shows: o The type of distribution. o The distribution amount per share. For stock splits, the report shows: o The date of the split. o The split ratio. At the end of each security are the following values: o The high price and date and low price and date found within the date range. o The simple average price. o The total distribution per share. The distribution per share amounts explain price drops due to dividend or capital gain payouts. The highest price for the period is flagged with an 'H', and the lowest price for the period is flagged with an 'L'. If the highest and lowest prices are the same, it is flagged with an '*'. 14.4.5 Activity Detail Report The Activity Detail Report lists all buy, sell, and/or distribution transactions. There are several variations for this report: [[Screen not in online version.]] You can print: Capital Gainz Users Manual 160 o All buy, sell, and distribution logs. These can be listed by log type: all buy logs, all sell logs, all distribution logs, or by security: the buy/sell/distribution logs for security 1, the buy/sell/distribution logs for security 2,... o Just the buy logs. o Just the sell logs. o Just the distribution logs. o Buy, sell, and distribution logs mixed together, similar to most mutual fund company statements you receive. o Brief or long formats for the open, closed, and distribution detail reports. The brief format shows a single line per record, while the long format shows several lines. The examples in this section use the long format. 14.4.5.1 Open Shares Detail Report [[Screen not in online version.]] The Open Shares Detail Report, also available from the Open Shares Log, is similar to the Open Shares Log. The records of shares bought over the period and still held as of the current date are sorted in ascending order by date. At the top of the page is: o The local security symbol. o The associated global security's name. o The security's current price. o The local security's account number. o Today's date if no date range was chosen, or else the selected date range. For each open shares record, you are shown: o The purchase date. o The number of shares purchased. o The basis price, which is the same as the purchase price if a category method is not being used. Capital Gainz Users Manual 161 o The basis amount, which is the same as the purchase amount if a category method is not being used. o The purchase commission or load. o Any notes recorded for the purchase. o The current gain/loss. o The short term or long term status of the open shares, based on the current date. Totals for each security include: o Total and short term shares bought during the period, and still open as of the current date. o Total and short term basis amount. o Total and short term weighted average purchase price. o Total and short term purchase commission or load. o Total and short term current value, using the last recorded price. o Total and short term gain/loss amount and percentage, using the last recorded price. 14.4.5.2 Closed Shares Detail Report [[Screen not in online version.]] The Closed Shares Detail Report, also available from the Closed Shares Log, is similar to the Closed Shares Log. The records of shares sold over the period are sorted in ascending order by date. At the top of the page is: o The local security symbol. o The associated global security's name. o Today's date if no date range was chosen, or else the selected date range. For each closed shares record, you are shown: o The selling date. Capital Gainz Users Manual 162 o The number of shares sold. o The selling price. o The selling amount. o The selling commission or load. o Any notes specified for the sale. o The purchase date of the shares sold. o The basis price of the shares sold, which is the same as the purchase price if a category method was not used. o The basis amount of the shares sold, which is the same as the purchase amount if a category method was not used. o The purchase commission or load of the shares sold. o The gain/loss amount and percentage for the sale. o The short term or long term status of the sale. If a particular sale resulted in the creation of multiple closed shares records, a subtotal is given for the sale date. Subtotals and totals for each security include: o Total and short term shares sold. o Total and short term weighted average selling price - this is not shown for subtotals, since a subtotal's selling price is the same for each closed shares record. o Total and short term selling commission or load. o Total and short term selling amount. o Total and short term purchase commission or load for the shares sold. o Total and short term basis amount for the shares sold. o Total and short term gain/loss amount and percentage. Capital Gainz Users Manual 163 14.4.5.3 Distribution Detail Report [[Screen not in online version.]] The Distribution Detail Report, also available from the Distribution Log, is similar to the Distribution Log. The records of distributions and fees over the period are sorted in ascending order by date. At the top of the page is: o The local security symbol. o The associated global security's name. o Today's date if no date range was chosen, or else the selected date range. For each distribution record, you are shown: o The date of the distribution. o The type of the distribution. o The amount of the distribution. o The distribution per share (not for fees). o Any note specified for the distribution. Return of principal distributions are treated as sales in order to reduce the basis. Thus, they are not reported here. Totals for each security include: o Total distribution amount for Dividend or Interest distributions. o Total distributions per share for Dividend or Interest distributions. o Total and short term distribution amounts for Long Term Capital Gain and Short Term Capital Gain distributions. o Total and short term distributions per share for Long Term Capital Gain and Short Term Capital Gain distributions. o Total amounts for Fee types. Capital Gainz Users Manual 164 14.4.5.4 Mixed Activity Detail Report [[Screen not in online version.]] The Mixed Activity Detail Report, also available from the Local Security Table, resembles statements you receive from mutual fund companies. It shows all buy, sell, and distribution activity over the period, in chronological order. At the top of the page is: o The local security symbol. o The associated global security's name. o The security's current price. o The local security's account number. o Today's date if no date range was chosen, or else the selected date range. All purchases during the period, even if you sold the shares later, show: o The purchase date. o The number of shares bought. o The actual purchase price, even if the security uses an averaging method. o The actual purchase amount, even if the security uses an averaging method. o The purchase commission or load. o If you sold the shares during the period, a line below the purchase information shows the date you sold them. For each distribution, you are shown: o The date of the distribution. o The amount of the distribution. o The distribution per share. At the end of each security, the following totals are calculated: o The total number of shares bought during the period, even if you Capital Gainz Users Manual 165 sold some later. o The weighted average of the shares purchased. o The total purchase amount. o The total purchase commission or load. o The total number of shares sold during the period. o The weighted selling price of the shares sold. o The total sale proceeds. o The total selling commission or load. o The total dividends or interest received over the period. o The total dividends or interest per share. o The total short term capital gain distributions. o The total short term capital gain distributions per share. o The total long term capital gain distributions. o The total long term capital gain distributions per share. o The total fees paid. Finally, your current open position is shown for the security: o The number of open shares as of the current date. o The value of the open shares as of the last recorded price. Capital Gainz Users Manual 166 Chapter 15 - User Settings User settings are either values that are subject to change, such as the holding period required for long term gain classification, or values that customize Capital Gainz for a particular user, such as automatically reinvesting distributions. Each of these settings is described below. Function keys at the bottom of the screen are: o Form Accept - accept all entries and write the user settings record. This is a short-cut key, since you get the same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to the Main Menu. This is a short-cut key, since you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL- ESC value. o F2:Set Colors - change the color settings for the screen groups. o F3:Report - print the User Settings Report. [[Screen not in online version.]] To change the user settings, you fill in the User Settings Form. This form is called up by selecting User Settings from the Main Menu. When a field requires a YES or NO value, then you'll see the current value followed by the valid choices. Thus, if a field is set to YES, you'll see: Field:YES YES NO 15.1 Long Term Holding Period in Days The holding period entry is the number of days shares must be owned before they can be classified as long term holdings. Depending on the current tax codes, long term gains may be taxed less than short term gains. Open shares are classified as long term if the current date exceeds the purchase date by more than the holding period; otherwise open shares are classified as short term. Gains or losses from selling shares are classified as long term if the date of the sale exceeded the purchase date by more than the holding period at the time of the sale; otherwise gains or losses from selling shares are classified as short term. Capital Gainz Users Manual 167 15.2 Price History Interval in Days This is the interval between price history entries. If this value is set to 28, then price entries are saved every 28 days, or about every month. (I suggest using 28 for monthly price histories.) Thus, if you record purchases on 1/1, 1/15, and 1/31, only the 1/1 and 1/31 prices are saved in the Price History File. To save all price entries, enter 0 for this value. The conditions for adding price history entries are described beginning on page 108. The goal is to keep the dates spread out by price history interval days. Thus, buy and sell activity may or may not result in price history entries. Using the Capital Gainz Utility Program, described in Chapter 17, you can rebuild the Price History File from the open shares, closed shares, and distribution files. All activity logs contain price/dates, so there is no danger of losing activity information by changing the Price History File. The Price History File is just a tool to use for security analysis. 15.3 Confirm Adds/Confirm Updates/Confirm Deletes You can request that Capital Gainz ask for confirmation before adding, changing, or deleting records. When a requested operation affects many records, such as a stock split or a sale, confirmation will always be requested, regardless of the confirmation settings. [[Screen not in online version.]] If confirmation is requested, then before the operation is executed the Confirm Form pops up. If you select 'YES', then the operation is performed. If you enter 'NO' or hit the ESC key, then the operation is not performed. This confirmation is a welcome safeguard for some, and an annoying nuisance to others. This is precisely why Capital Gainz leaves the settings up to you. Even if you don't care much for confirmations, it still may be wise to leave them on for deletions. 15.4 Reinvest Distributions You can have Capital Gainz bring up the Buy Shares Form to enter reinvestment information after recording a distribution. This is useful for mutual funds that automatically reinvest distributions. Capital Gainz Users Manual 168 15.5 Redistribute Proceeds You can have Capital Gainz bring up the Buy Shares Form to redistribute proceeds after recording a sale. This is useful if you automatically 'sweep' proceeds from sales into another security, such as a money market fund. 15.6 Log Transactions (Inactive) Transaction logging has nothing to do with activity logs. Activity logs are always maintained. Transaction logging refers to the maintenance of before and after images of data files during file updates. Currently, this feature is turned off. As Capital Gainz became more complex, the effect on performance was staggering. You are much better off simply doing regular backups. As an added precaution, you may consider adding a line to the CG.BAT startup batch file to automatically backup your data files before and/or after invoking Capital Gainz. 15.7 Include Commission in Basis for Gain/Loss% By default, the gain/loss calculations in Capital Gainz do not include commissions in the basis. Thus, you can actually have greater than a 100% loss. The motivation for this decision is that the commission amount is never actually used to purchase shares. Set this value to 'YES' to include commissions in the basis, resulting in slightly lower gain and loss percentages. The gain/loss amounts are the same whether or not commissions are included in the basis. See Chapter 18 for details on calculations used by Capital Gainz. 15.8 Use Short Sales If you never use short sales, leave this value set to 'NO'. Even if you expect to use short sales, leave it set to 'NO' until your first short sale. When you execute your first short sale, this value will automatically be set to 'YES'. You get slightly better performance when recording buys if you don't need short selling. The slower performance is caused by searching the closed shares file for short sales to cover whenever you begin recording a purchase. 15.9 Backup Command You enter the DOS command to be used to backup data files. Since most users already have backup or compression utilities, Capital Gainz allows you to use tools that you are already familiar with. However, Capital Gainz Users Manual 169 only a single DOS command line can be entered, so to backup using DOS' COPY command you would have to write a batch file, and specify that batch file as the backup command. Some examples of backup command entries would be: o If PKZIP is available: PKZIP -U A:CGDATA.ZIP *.DAT *.K01 o If the 4DOS shell is installed: COPY *.DAT *.K01 A: o If a batch file named BACKUP.BAT is used BACKUP Where the contents of BACKUP.BAT could be: COPY *.DAT A: COPY *.K01 A: As these commands show, the data files that must be backed up are identified by the DOS wildcards *.DAT and *.K01. If you have access to a data compression utility, use it to conserve backup disk space and to speed up the floppy disk transfer. This field is initialized to CAPGNZBU A. CAPGNZBU.BAT is a DOS batch file included with Capital Gainz. It simply copies the data files to a specified disk drive. 15.10 File Viewer You enter the DOS command to be used to view reports sent to the screen. If you leave this field blank, then the default internal file viewer will be used. The advantages of using the internal file viewer are: o You don't need to have another file viewing program installed. o Since it's built-in, Capital Gainz does not have to shell out to DOS before letting you view the file. o The internal file viewer is optimized for viewing the online users manual, as it uses the index file generated at installation to quickly jump to specific pages. Capital Gainz Users Manual 170 The disadvantages of the internal file viewer are: o Although it's faster to bring up than an external viewer, it is generally slower when scrolling through long reports. o The internal viewer only lets you scroll up, scroll down, go to the top, go to the end, and go to a specific page. No search capabilities or other handy functions are available. The advantages of using an external file viewer are: o Most external file viewers include a range of useful features, such as search, cut and paste, and bookmarks. o You can use the same file viewer that you always use outside of Capital Gainz. The disadvantages of using an external file viewer are: o Since Capital Gainz must save an image of its internal process and shell out to DOS, an external file viewer takes much longer to bring up. In fact, this penalty is so great that it only makes sense to use an external file viewer if you defined a RAM disk as your temporary directory at installation. o You must have another file viewer installed. An example of an external file viewer is the ever-popular LIST program. If you want to use LIST as your file viewer, and it's on your DOS PATH, just enter the following in the File Viewer Field: LIST 15.11 Price File Read at Startup You can automatically have Capital Gainz read a file to update security prices at startup. If you update your security prices in the PRICES file, then enter the following in this field: PRICES See page 171 for more information on using an ASCII file to update your security prices. 15.12 Append Reports You can choose to either append or overwrite files when you send reports to a DOS file. A temporary file, 'CAPGNZ.TMP', is used in the appending process. If you choose not to append reports, existing files Capital Gainz Users Manual 171 will be overwritten without warning. 15.13 Lines Per Page You can specify the number of report lines printed on each page. The default setting of 58 should work with most printers. For most daisy wheel and dot matrix printers, this value can be set to 66 lines per page, resulting in some paper savings. This value must be between 50 and 66. 15.14 Line Draw Chars You can change this setting if your printer doesn't support the extended ASCII line drawing characters. If a report prints nothing or garbage where separator lines should be, then your printer either does not support these characters or the dip switch settings should be changed. Most printers support the line drawing characters. However, you can turn this feature off, substituting alternate printable ASCII characters '-' and '=' for the extended ASCII characters. 15.15 Form Accept and Form Reject Keys You may want to change the Capital Gainz Form Accept Key from the default CTRL-ENTER value, or the Form Reject Key from the default CTRL-ESC. A range of other values is available. Just erase the displayed value and hit ENTER to pop up the Keys Table, described below. CTRL-ESC conflicts with DOS 5.0, which uses it to suspend programs and swap them out to memory, and with Windows, which uses it to bring up the Task List. The DOS or Windows keys can be remapped, but it's easier to remap the Capital Gainz key. 15.15.1 Keys Table [[Screen not in online version.]] The Keys Table displays a range of values that can be used for the Form Accept or Form Reject Keys. Highlight your choice and hit ENTER. 15.16 Set Colors [[Screen not in online version.]] You get to the Select Screen Colors screen from a function key on the User Settings Form. This screen lets you customize the screen colors. Screens are grouped into 9 types: Capital Gainz Users Manual 172 o Portfolio screens, such as the Portfolio Table and the Portfolio Form. o Global security screens, such as the Global Security Table and the Global Security Form. o Broker/Investment Company screens, such as the Broker/Investment Company Table and the Broker/Investment Company Form. o Local Security screens, such as the Local Security Table and the Local Security Form. o General activity screens, such as the Activity Menu. o Buy Activity screens, such as the Buy Shares Form and the Open Shares Log. o Sell Activity screens, such as the Sell Shares Form and the Closed Shares Log. o Distr Activity screens, such as the Record Distribution Form and the Distribution Log. o Other screens, such as the User Settings Form. These 9 types of screens are further divided into 3 kinds: o Forms, such as the Local Security Form. o Tables, such as the Open Shares Log. o Other, such as the Activity Menu. The screen types and kinds are displayed as a matrix on the Select Screen Colors screen. This screen and the Pick Foreground and Background Colors screen are always white on black, except where actual color settings are shown. The matrix on the Select Screen Colors screen shows 'Form', 'Table', and 'Other' in the currently selected background/foreground colors for each screen type. To change the colors for a screen type/kind, position the pointer and hit ENTER. This will bring up the Pick Foreground and Background Colors screen. If you exit from the Select Screen Colors screen with the ESC key, you are asked if you want to confirm the selected colors. Function keys at the bottom of the screen are: o Form Accept - accept all the entries and write the colors selected to the user settings record. You can redefine this key from the Capital Gainz Users Manual 173 default CTRL-ENTER value. o Form Reject - exit immediately, back to the User Settings Form. This is a short-cut key, since the you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. 15.17 Pick Foreground and Background Colors [[Screen not in online version.]] The Pick Foreground and Background Colors screen is brought up by hitting ENTER for a screen type/kind on the Select Screen Colors screen. At the top of the screen is an example of the screen type/kind's currently selected colors. The two rows of color blocks show the colors available - some of these may appear to be the same, depending on the monitor being used. To select the foreground or background color, position the pointer under the desired color in the row and hit ENTER. The example at the top of the screen is updated to show what the color combination looks like. To accept the colors, enter 'YES' to 'Accept Colors'. Otherwise, enter 'NO'. The Pick Foreground Colors screen tries to prevent color combinations that are unreadable. However, it's up to you, assisted by the displayed example, to select reasonable color combinations. Function keys at the bottom of the screen are: o Form Accept - go to the Accept Colors field. This is a short-cut key, since you get same result by hitting ENTER on each field. You can redefine this key from the default CTRL-ENTER value. o Form Reject - exit immediately, back to Select Screen Colors. This is a short-cut key, since the you get the same result by hitting ESC to back out of the form. You can redefine this key from the default CTRL-ESC value. Capital Gainz Users Manual 174 Chapter 16 - View Documentation The View Documentation option on the Main Menu lets you view the online Capital Gainz documentation, if you chose to install it. Viewing documentation is the same as viewing a report on the screen. See page 148 for information about viewing reports. [[Screen not in online version.]] You can view the following documents on line: Users Manual: the Capital Gainz Users Manual. To help you get around faster, Capital Gainz creates an index of the users manual at startup. This lets you quickly jump to specific pages. You can find your topic in the Table of Contents or in the Index, and then go directly to the specified page with the Goto Page function. Read Me File: the Read Me file is a standard file included with software that contains recent information not included in the Users Manual and instructions on getting started. License: the Capital Gainz license, describing the legal restrictions on using Capital Gainz. This document also includes information on what you receive and are entitled to upon registration. History: a revision-by-revision account of changes made to Capital Gainz. Capital Gainz Users Manual 175 Capital Gainz Users Manual 176 Chapter 17 - Utility Program The Capital Gainz Utility Program gives you several handy, non- essential features not available in the Capital Gainz main program. These features focus on manipulating your Capital Gainz data files. They have nothing to do with managing your investments. Since the Utility Program's operations manipulate many files and records, the bottom half of the screen is devoted to displaying progress and error messages. These messages scroll, and any errors stop the scrolling and request user input. The top half of the screen is further divided into the main menu on the left, and auxiliary menus on the right. [[Screen not in online version.]] In contrast to Capital Gainz, the Utility Program's colors cannot be customized. Because of this, the screens use a limited number of colors. If you have trouble seeing the screens, put your monitor in monochrome mode before starting the Utility Program: MODE BW80 or MODE MONO You should be very careful when using the Utility Program, since it can potentially affect all of your current data. To this end, the following conventions are used: o Whenever you start up the Utility Program, you are explicitly asked if you want to backup your data files. o You must hit a function key to begin an operation. Just filling in all the fields will not start any operation. 17.1 Backup [[Screen not in online version.]] Every time you start up the Utility Program, you are asked if you want to backup your data files. This is definitely a good idea. If you answer 'YES', the Backup Form lets you select a disk drive to copy the data files to. The backup executes these two DOS commands (if A is the disk drive you selected): COPY *.DAT A: COPY *.K01 A: Capital Gainz Users Manual 177 If you want to archive the data with a utility such as PKZIP, you must do this before starting up the utility program. 17.2 Utility Menu [[Screen not in online version.]] The Utility Menu lists the available operations: o Upgrade to a New Revision - converts data files for any required file format changes between revisions. o Copy/Move Portfolios - copy or move an entire portfolio. o Copy/Move Local Securities - copy or move local securities between portfolios. o Import/Export File - import or export comma-delimited ASCII data files, or print out file formats. o Rebuild Price History - reconstruct the price history from the activity logs. o Rebuild/Pack Data Files - immediately reclaim space from deleted records. o Directory - change directories. o Exit - return to DOS. 17.3 Upgrade to a New Revision [[Screen not in online version.]] If you upgraded during Capital Gainz installation, you've already used the Upgrade Form. This form displays the newest revision that you will be upgrading to, and accepts: o The directory containing the data files you want to upgrade. o The Capital Gainz revision number that was used to create the existing data files. The Utility Program can usually determine this number, but you should verify it. The version number is listed on the original Capital Gainz diskettes. If you specify an incorrect number, the Utility Program will probably fail, as it tries to access the data files based on your entry. Previous revisions of Capital Gainz that must be upgraded are: 1.0, 1.1, 1.2, 2.0, 2.1, and 2.2. Capital Gainz Users Manual 178 Function keys listed at the bottom of the screen are: o F10:Perform Upgrade - execute the upgrade process. Just accepting all of the fields will not initiate the operation. o SHFT-F10:Exit - return to the Utility Menu. You can also exit by using the ESC key on the first field. As the upgrade executes, status messages are displayed in the lower half of the screen. Upgrades progress from revision to revision as needed. Thus, an upgrade from version 2.1 to version 3.0 will first upgrade from 2.1 to 2.2, and then from 2.2 to 3.0. Note that not all revisions required a file format change. For instance, an upgrade from 2.0 to 3.0 does not require any change between 2.0 and 2.1. The upgrade process between two revisions is a two step process: o Copy the existing data to temporary files, and remove the original files. o Create the new version's data files from the old version's temporary files. Failure during the upgrade process can leave your data files in an inconsistent state. Be sure that you have current backups of all data files before attempting an upgrade. If the upgrade fails, try to correct the error, restore your backup data files, and retry the upgrade. 17.4 Copy/Move Portfolios [[Screen not in online version.]] You can copy or move portfolios using the Utility Program. These functions are useful for: o Creating a new portfolio that mirrors the holdings in an existing portfolio. o Moving an old portfolio to a diskette for archival purposes. o Bringing together portfolios that you created in different directories. Before revision 3.0 of Capital Gainz, this was the best way to manage separate portfolios. [[Screen not in online version.]] After choosing to copy or move a portfolio, the Utility Copy/Move Portfolio Form is displayed. You enter: Capital Gainz Users Manual 179 o (Required) From Directory - the source directory of the portfolio to be copied/moved. This is initialized to the current directory. o (Required) [From] Portfolio ID - the ID of the portfolio to be copied/moved. If you enter an invalid number, the Portfolio Lookup Table, described below, pops up. o (Required) To Directory - the destination directory where the portfolio will be copied/moved to. This is initialized to the current directory. After entering a valid directory, the Utility Program sets the [To] Portfolio ID to the lowest unused ID in the destination directory. o (Optional) [To] Portfolio Name - this field is initialized to the name of the portfolio you are copying or moving, but you can change it. After completing the form, you must choose one of the operations available via function keys: o F10:Perform Copy/Move - execute the portfolio copy/move. Just accepting all of the fields will not initiate the operation. o SHFT-F10:Exit - return to the Utility Portfolio Maintenance Menu. You can also exit by using the ESC key on the first field. When you 'Copy' or 'Move' a portfolio, the following entire data files are copied from the source to the destination. If you specified 'Move', these files are then deleted from the source: o Local Securities File for the portfolio. o Open Shares File for the portfolio. o Closed Shares File for the portfolio. o Distributions File for the portfolio. The Portfolio File's record for the portfolio moved is copied from the source to the destination. If you specified 'Move', the original portfolio record is deleted. Records from the following data files are also copied from the source to the same data file at the destination. With one exception, they are not deleted from the source: o Broker/Investment Company File. o Global Securities File. o Price History File. Capital Gainz Users Manual 180 The only time these records are deleted from the source is if you specified 'Move' and the portfolio moved was the only portfolio defined. To see how the Capital Gainz data files are related, refer to page 16. 17.4.1 Portfolio Lookup Table [[Screen not in online version.]] The Portfolio Lookup Table pops up if you enter an invalid portfolio ID. To select a portfolio ID, highlight it and hit ENTER. 17.5 Copy/Move Local Securities [[Screen not in online version.]] You can copy or move local securities using the Utility Program. These functions are useful for: o Creating a new holding in a portfolio that mirrors an existing holding in another portfolio. o Moving information for an inactive local security to a portfolio on a diskette for archival purposes. o Bringing together local securities from different portfolios. [[Screen not in online version.]] After choosing to copy or move a local security, the Copy/Move Security Form is displayed. You enter: o (Required) From Directory - the source directory of the portfolio containing the local security to be copied/moved. This is initialized to the current directory. o (Required) [From] Portfolio ID - the ID of the portfolio containing the local security to be copied/moved. If you enter an invalid number, the Portfolio Lookup Table, described on page 181, pops up. o (Required) [From] Local Symbol - the symbol of the local security to be copied/moved. If you enter an invalid symbol, the Local Security Lookup Table, described below, pops up. o (Required) To Directory - the destination directory of the portfolio where the local security will be copied/moved to. This is initialized to the current directory. Capital Gainz Users Manual 181 o (Required) [To] Portfolio ID - the ID of the portfolio where the local security will be copied/moved to. You must have already created this portfolio in Capital Gainz. If you enter an invalid number, the Portfolio Lookup Table, described on page 181, pops up. After completing the form, you must choose one of the operations available via function keys: o F10:Perform Copy/Move - execute the local security copy/move. Just accepting all of the fields will not initiate the operation. o SHFT-F10:Exit - return to the Utility Security Maintenance Menu. You can also exit by using the ESC key on the first field. When you 'Copy' or 'Move' a local security, the related records from the following data files are copied from the source portfolio to the destination portfolio. If you specified 'Move', these records are then deleted from the source portfolio: o Local Securities File. o Open Shares File. o Closed Shares File. o Distributions File. Related records from the following data files are also copied from the source to the destination. They are not deleted from the source: o Broker/Investment Company File. o Global Securities File. o Price History File. To see how the Capital Gainz data files are related, refer to page 16. 17.5.1 Security Lookup Table [[Screen not in online version.]] The Security Lookup Table pops up if you enter an invalid local security symbol. To select a security, highlight it and hit ENTER. Capital Gainz Users Manual 182 17.6 Import/Export [[Screen not in online version.]] You can import or export comma-delimited ASCII files, or just print out the internal file format, using the Utility Program. These functions are useful for: o Printing out the Capital Gainz data file types and formats. o Exporting data to verify the exact contents of all fields, and possibly make minor changes. o Exporting data for use in another program, such as a spreadsheet or a different report writer. o Importing data from another program. o Exporting data from damaged data files, to salvage any non-corrupt data. You should have been performing regular backups, so you wouldn't have to resort to this action. Because Capital Gainz consists of many related data files, importing data from other programs, or exporting data to other programs, is not a simple task. It's very easy to end up with data that Capital Gainz cannot access, or to build data files with incorrect data. Be sure you thoroughly read and understand the sections on importing and exporting data below, as well as the description of the Capital Gainz data files beginning on page 16. To see how the Capital Gainz data files are related, refer to page 16. [[Screen not in online version.]] After choosing to import, export, or print a file format, the Select Data File Menu is displayed. Choose one of the displayed files to operate on. The User Settings File is a DOS file, and is not available for import/export. If you are importing or exporting data and select the Local Security, Open Shares, Closed Shares, or Distributions File, you are asked for the portfolio ID. If you leave this blank, or enter an invalid portfolio ID, the Portfolio Lookup Table, described on page 181, pops up. [[Screen not in online version.]] After selecting a data file, you enter: o The name of a file for importing from, exporting to, or printing the file format to. On import, if this file does not exist, an error is returned. On export or format printing, if this file exists it is appended to, and if it does not exist, it is created. Capital Gainz Users Manual 183 o The date format to use, either INTERNAL or STRING, for import/export. Some Capital Gainz data files have date fields. The INTERNAL format used by Capital Gainz is a 32 bit integer containing the number of days since 1801. Since this date is not easily readable or usable outside of Capital Gainz, you have the option of using a STRING type, formatted as MM/DD/YY (i.e., 12/10/91). Then you must choose one of the function keys: o F10:Perform Import/Export/Print Format - execute the import, export, or print format operation. Just accepting all of the fields will not initiate the operation. o SHFT-F10:Exit - return to the Select Data File Menu. You can also exit by using the ESC key on the first field. 17.6.1 Import Comma-Delimited File Importing data using the Utility Program is difficult in that the Capital Gainz data files are related in a number of ways. For instance, if you import data into the Open Shares File: o The symbols referenced must also be imported into the Local Securities File. o The data imported into the Local Securities File must have correct open shares information. Alternatively, you can use the Capital Gainz Local Security Fixup Form from the Local Securities Table. o The global symbols referenced in the Local Securities File also must be imported into the Global Securities File. o The broker/investment companies referenced in the Local Securities and Global Securities Files must also be imported into the Broker/Investment Company File. o The global securities' price histories also must be imported into the Price History File. Alternatively, you can use the Utility Program's Rebuild Price History function. As you can see, importing data from other programs is a tricky task. A much better use for the import function is to make minor tweaks to data files: o Export the data file. o Use an ASCII text editor to make the minor changes to the number of Capital Gainz Users Manual 184 shares, amounts, etc. o Import the file containing the changes. In any case, importing data is only recommended for exceptional circumstances, and even then should only be attempted by experienced users. It's simply too easy to end up with data that can't be accessed from the main Capital Gainz program. 17.6.2 Export Comma-Delimited File Exporting data lets you scan the contents of your data files for minor errors. If you find any problems, then you can modify the records with a text editor and import the file. However, it's strongly recommended that you manage changes through Capital Gainz itself whenever possible. You also can export data in order to import it into another program. Most programs that support data imports can accept comma- delimited input. Before importing the data, you will probably need to modify the data with a text editor. The most common type of program that you would import data into is a spreadsheet, like TRIUS, Inc.'s As-Easy-As . This lets you further analyze your investment data, and, most importantly, generate graphs. To aid in this process, the Capital Gainz data file formats can be printed to a file, and exported data is in key order. As an example, here's the steps involved in generating a line graph of prices using As-Easy-As: o Export the Price History File to PRC.EXP. Be sure to specify the STRING date format. o Use a text editor to remove all records except a single symbol's price records. For instance, get rid of all records except those where the symbol is CPL and the type is PRC. o Start up As-Easy-As. o From the '/' menu, choose File, Import, Values, and specify PRC.EXP as the file name. This fills in columns A, B, C, and D with the symbol, date, type, and price. o From the '/' menu, choose Graphics, Type, Line. For the Range, set X to the entire B column (date) and A to the entire D column (price). o Change the scales as needed. For instance, you may want A to range from 0 to 100 dollars per share. Also, you may want to add labels. Capital Gainz Users Manual 185 o View the graph. [[Screen not in online version.]] 17.6.3 Print Comma-Delimited Format This function lets you print out the format of the Capital Gainz data files. This tells you the field names, field types, and order of the data maintained in the files. When importing or exporting data, you should keep a copy of the file format handy for reference. 17.7 Rebuild Price History [[Screen not in online version.]] You can clean out the Price History File and rebuild it based on just the data in the Open Shares File, Closed Shares File, and Distribution File. You may want to do this if: o Your Price History File has gotten very large, and you want to trim it down. o You inadvertently deleted or changed records, and want to reset the Price History File. The current setting for the price history interval is displayed. From the function keys, you can: o F2:Change Price History Interval - change the current setting for the price history interval. See page 108 for information on how price history entries are added. o F10:Perform Rebuild - execute the rebuild of the Price History File. o SHFT-F10:Exit - exit back to the Utilities Menu. You can also exit by using the ESC key. All price history entries that do not correspond to a buy, sell, or distribution record will be deleted. If you just want to add back some activity prices, then export the price history file, rebuild the price history, then import the price history file that you initially exported. 17.8 Rebuild/Pack Data Files Capital Gainz data files do not automatically release space for deleted records. Instead, the deleted record area is reused when you add new records. Thus, if you delete many records - say a range from the Price History File - then the disk space used by the file will not Capital Gainz Users Manual 186 change. However, as you add new records, the disk space used by the file will not increase until the number of new records exceeds the number of records deleted. If you want to reclaim space from deleted records immediately, use the Rebuild/Pack Data Files option. This 'packs' the data in the file, reclaiming any unused space. 17.9 Directory [[Screen not in online version.]] You can change the current directory from the Utilities Menu. Unless you have data files in several directories, you normally won't use this option. The Copy/Move Portfolio and Copy/Move Local Security options both allow you to specify source and destination directories. 17.10 Exit When you exit from the Utility Program, you return to the directory you were in when you originally started it. Capital Gainz Users Manual 187 Capital Gainz Users Manual 188 Part III: A Potpourri of Investment Information Chapter 18 - Analysis Capital Gainz provides all the numbers you need for analysis, but does not include graphics (yet). However, you can export data to other programs, such as spreadsheets, for graphing. The variety of calculations and reports available will help you keep on top of your portfolio's performance. The goal of this chapter is to point out what Capital Gainz offers for analysis and mention some generally accepted rules of investment. For specific information and advice, you should consult other sources, such as the business section of your local newspaper, investment books, investment newsletters, and financial advisors. 18.1 Discrepancies Before discussing calculations, a few words on rounding and other discrepancies are in order. 18.1.1 Open Shares Rounding The Open Shares Log and Open Shares Detail Report calculate each purchase's gain or loss. However, the total gain or loss is calculated by multiplying the total number of open shares by the current price, and subtracting the total basis. Because of rounding, this total may not be the same as summing the gain or loss of all the individual records. 18.1.2 With Average Selling Methods You are likely to see rounding whenever you use the Single Category or Double Category selling methods. When you sell the shares, the average price is used as the basis price. However, when this price is multiplied by the number of shares, the resulting amount is rounded to the nearest cent. Thus, the amount subtracted for the shares sold may alter the basis price of the remaining shares. Likewise, the open basis price for the shares sold may differ from the basis price displayed before the sale. However, any difference is insignificant, and the underlying amounts are kept consistent. 18.1.3 Local Security Precisions In the Local Security Form, you can specify share number and price precisions for a local security. Check the statements from your broker or mutual fund company and see what precisions they use, so your totals and their totals will match. These precision entries are especially helpful when you record purchases, sales, and Capital Gainz Users Manual 189 distributions, because the figures calculated by Capital Gainz will match the actual figures without modification if you defined them correctly. 18.1.4 Mutual Fund Total Return It's difficult to get an exact match between the total return calculated by Capital Gainz and the total return calculated by your mutual fund company. The beginning and ending dates and prices must match, and all distribution amounts and reinvestment prices must also match. Usually, these figures are available from the fund literature mailed to you. Even then, the mutual fund company may use greater precision in their calculations. In any case, the total return figure reported by Capital Gainz should be very close to the figure reported by the mutual fund company. 18.2 Open Shares Gain/Loss The first step in analysis should be checking the gain/loss on your open shares. You can see these figures in the Local Security Table, the Portfolio Table, the Portfolio Summary Report, the Portfolio Detail Report, the Activity Summary Report, and the Open Shares Detail Report. Most of the advice I've read boils down to: 'Cut your losers, ride your winners'. Gain/loss on open shares is calculated with: (open_shares_value - open_shares_basis - open_shares_comm) where open_shares_value is: (number_of_open_shares * current_price) If a security uses a category method, then open_shares_basis is the number of open shares multiplied by the basis price. Otherwise, the open_shares_basis is the sum of the amounts paid. Open_shares_comm is the total purchase commissions paid. 18.2.1 Open Shares Gain/Loss Percentage The gain/loss percentage for open shares, assuming you don't include commissions in the basis, is calculated with: open_shares_gain_loss ─────────────────────────── * 100 open_shares_basis If you include commissions in the basis: Capital Gainz Users Manual 190 open_shares_gain_loss ──────────────────────────────────── * 100 open_shares_basis + open_shares_comm By default, Capital Gainz does not include commissions in the basis. The reasoning behind this approach is that the commission amount was never translated into any shares. In the User Settings Form, you can specify to use commissions in the basis. This is strictly based on preference, and you can change back and forth without any permanent changes being made. 18.2.2 Broker/Investment Company Performance You can choose to subtotal the Portfolio Detail Report by broker/investment company. This feature is useful for comparing performance if you rely on a broker or investment advisor for advice. These comparisons will indicate both the best stock and the best investment type recommendations. Also, you can use the subtotals to compare the performance of different mutual fund groups, or investment companies. However, to have a fair comparison, you should hold similar security types in each mutual fund group. 18.3 Closed Shares Gain/Loss Closed share performance is available from the Activity Summary Report, the Closed Shares Detail Report, and the Open Information for Shares Sold Report. This figure will tell you if you've been slow to cut your losses, or quick to realize your gains. Gain/loss on shares sold is calculated with: (closed_shares_amount - open_shares_basis - closed_shares_comm - open_shares_comm) where closed_shares_amount is: (number_of_shares_sold * selling_price) If a security uses a category method, then open_shares_basis is the number of open shares sold multiplied by the basis price at the time of the sale. Otherwise, the open_shares_amount is the sum of the amounts paid for the shares sold. Open_shares_comm is the total commissions paid to purchase the shares. Closed_shares_comm is the total commissions paid to sell the shares. For the Schedule D-1 Report, the gain/loss calculation results in the same values as above. However, intermediate values printed in the Capital Gainz Users Manual 191 report deserve some explanation here. The sales price reported in the Schedule D-1 Report is simply: closed_shares_amount However, as explained in Chapter 19, the cost is determined by: open_shares_basis + open_shares_comm + closed_shares_comm Thus, using some mathematics (associativity rule), you can see that the result is identical to the previous calculation: gain_loss = closed_shares_amount - cost = closed_shares_amount - (open_shares_basis + open_shares_comm + closed_shares_comm) = closed_shares_amount - open_shares_basis - closed_shares_comm - open_shares_comm 18.3.1 Closed Shares Gain/Loss Percentage The gain/loss percentage for closed shares, assuming you don't include commissions in the basis, is calculated with: closed_shares_gain_loss ───────────────────────────── * 100 open_shares_basis If you include commissions in the basis: closed_shares_gain_loss ───────────────────────────────────────────────────────── * 100 open_shares_basis + open_shares_comm + closed_shares_comm By default, Capital Gainz does not include commissions in the basis. The reasoning behind this approach is that the commission amount was never translated into any shares. In the User Settings Form, you can specify to use commissions in the basis. This is strictly based on preference, and you can change back and forth without any permanent changes being made. 18.4 Average Price The average price calculation for the shares purchased is: open_shares_basis ───────────────────── number_of_open_shares Capital Gainz Users Manual 192 This is a weighted average, telling you the average price that you paid for shares of the security. The average price calculation for the shares sold is: sold_shares_amount ───────────────────── number_of_sold_shares Again, this is a weighted average, telling you the average price that you realized on shares of the security. However, the Price History Table's average price calculation gives you a straight, unweighted average of the security's share prices: total_of_prices ──────────────── number_of_prices 18.5 Current Yield Current Yield refers to the simple annual percentage you can expect from a given security. Some securities don't pay out dividends or interest, and thus have a current yield of 0%. Only dividends/interest are factored into the yield calculation, even though most mutual funds also regularly make capital gains distributions. Capital gains distributions are erratic, rendering any calculations based on them as meaningless. The current yearly dividend/interest payout for a security is calculated as the number of payouts per year multiplied by the amount of the last per share payout. Say you own 100 shares of a security that distributes dividends quarterly. A $76.00 dividend payment translates into $0.76 per share. Multiply by four, since the dividend is quarterly, and you have a $3.04 per share annual dividend. If the shares are trading at $45.00 each, then the current yield is 6.76%. Current Yield: (dividends_per_year * last_dividend_per_share) ──────────────────────────────────────────────────── * 100 last_price_per_share In the above example: (4 * .76) 3.04 ─────────── * 100 = ───── * 100 = 6.76% 45.00 45.00 Capital Gainz Users Manual 193 Current yield is usually more important for bonds or large company mutual funds and stocks, where price appreciation is a secondary consideration. For growth or small company mutual funds and stocks, other performance figures, such as total return, are more important than current yield. 18.6 Total Return The total return calculation, shown on the Activity Summary Report, shows how a particular security fared over a specified period. This figure represents a 'buy-and-hold' strategy, which may or may not be equivalent to the performance that you realize. Reinvestment of distributions is assumed. Total return is calculated by scanning the Price History File for prices and distributions per share. The actual calculation is: Total Return: begin_shares = 1.00 end_shares = 1.00 + shares_bought shares_bought = sum(distr_per_share/reinvestment_price) begin_amt = begin_shares * begin_price end_amt = end_shares * end_price (end_amt - begin_amt) ───────────────────── * 100 begin_amt To compare this figure to a fixed, compounded investment, the Annual Percentage Rate (APR) is also calculated. The APR assumes simple, yearly compounding of interest, and is calculated by: begin_price = first price found within date range end_price = last price found within date range years = (end_date - begin_date) ─────────────────────── 365 APR: end_amt 1 ( ───────── ^ ───── - 1 ) * 100 begin_amt years As you can see, reinvestment of distributions is assumed. This gives you a reliable comparison to the return offered by fixed income investments. Capital Gainz Users Manual 194 For example, say Carolina Power and Light (CPL) had the following associated information for 1/ 1/90 through 12/31/91: begin_shares = 1.00 end_shares = 1.00 + shares_bought begin_price = 47.228 on 1/ 3/90 end_price = 52.625 on 12/27/91 shares_bought = .1387 ( 2/ 2/90: ((1.0000 + .0000) * .73)/43.637 = .0167 5/ 2/90: ((1.0000 + .0167) * .73)/43.695 = .0170 8/ 6/90: ((1.0167 + .0170) * .73)/43.651 = .0173 11/ 5/90: ((1.0337 + .0173) * .73)/43.318 = .0177 2/ 1/91: ((1.0510 + .0177) * .76)/45.292 = .0179 5/ 2/91: ((1.0687 + .0179) * .76)/48.058 = .0172 8/ 1/91: ((1.0866 + .0172) * .76)/47.420 = .0177 11/ 1/91: ((1.1038 + .0177) * .76)/49.625 = .0172 Total: .1387) begin_amt = 1.00 * .47.228 = 47.228 end_amt = (1.00 + .1387) * 52.625 = 59.924 years = 2 Total Return: (59.924 - 47.228) ───────────────── * 100 = 26.88% 47.228 APR: 59.924 1 ( ───────── ^ ─── - 1 ) * 100 = 12.64% 47.228 2 So to beat the performance of CPL over the two years, you would have needed a fixed income investment yielding better than 12.64%. 18.7 Your Performance The Activity Summary Report processes all of your activity in a security to come up with a figure showing your performance. If you had purchased shares at the beginning of the period, and then just held them to the end of the period, then this calculation will be the same as the total return figure for the security. However, if you purchased more shares over the period, or sold shares over the period, then your actual performance will be better or worse than the total return of the security over the period. This performance calculation is complex. The goal is to measure Capital Gainz Users Manual 195 in-flow and out-flow of dollars to arrive at how much money you would have made, or lost, if you liquidated the account. Unlike all other calculations in Capital Gainz, this figure adds back open shares amounts that you sold later. It's like taking a snapshot of your portfolio at the beginning and ending of the period: if you sold shares after the specified end date, they are still considered to be open at the specified end date. There are five components to your performance: o Your initial holdings as of the specified begin date. This includes shares purchased before the begin date and not sold as of the begin date. o Your buy activity over the period. This includes all purchases between the begin and end dates, regardless of whether or not you sold the shares later. o The distributions you received, and fees you paid, over the period. (In the Activity Summary Report, this will be the same as the distribution figures in the top section of the report.) o Your selling activity over the period. (In the Activity Summary Report, this will be the same as the closed figures in the top section of the report.) o Your holdings as of the specified end date. This includes shares purchased before the end date and not sold as of the end date. These figures are then combined, resulting in a figure representing your overall performance: Capital Gainz Users Manual 196 Your Performance: begin_price = first price found after begin date initial_value = open shares at begin date * begin_price end_price = last price found before end date end_value = open shares at end * end_price sell_amt = total amount of sales over the period sell_comm = total selling commissions over the period buy_amt = total purchase amount over the period buy_comm = total purchase commissions over the period distributions = total dividends, interest, and capital gains received over the period fees = total fees paid over the period (end_value) + (sell_amt - sell_comm) + (distributions - fees) - (initial_value + buy_amt + buy_comm) ─────────────────────────────────────── = total_period_gain You Performance Percentage: total_period_gain ─────────────────────── * 100 initial_value + buy_amt or, if you included commissions in the basis: total_period_gain ────────────────────────────────── * 100 initial_value + buy_amt + buy_comm APR: begin_amt = initial_value + buy_amt end_amt = begin_amt + total_period_gain end_amt 1 ( ───────── ^ ─── - 1 ) * 100 begin_amt years Let's look at an example using the Twentieth Century Vista mutual fund between 1/ 1/90 and 12/31/91: Capital Gainz Users Manual 197 Your Performance: begin_price = 8.51 on 1/08/90 initial_value = 307.99 end_price = 11.93 on 12/27/91 end_value = 1339.56 sell_amt = 510.00 sell_comm = 0.00 buy_amt = 1200.00 buy_comm = 0.00 distributions = 0.00 fees = 10.00 (1339.56) + (510.00) + (-10.00) - (307.99 + 1200.00) ────────────────────── = 331.57 Your Performance Percentage: 331.57 ───────────────── * 100 = 21.99% 307.99 + 1200.00 APR: begin_amt = 307.99 + 1200.00 = 1507.99 end_amt = (307.99 + 1200.00) + 331.57 = 1839.56 1839.56 1 ( ───────── ^ ─── - 1 ) * 100 = 10.45% 1507.99 2 18.8 Total Return vs Your Performance Since the total return figure represents a buy-and-hold strategy, you can compare it to whatever strategy you used over the period. If you used dollar-cost averaging, then see if that worked better than a buy-and-hold approach. For example, see below how a dollar-cost investment approach in Kroger stock outdid the total return of the stock over a certain period: Capital Gainz Users Manual 198 Total Return (Buy-and-Hold): Security Performance Begin Price:$17.8120 End Price:$21.7500 Over Period From Distr/Share: $0.0000 bought 0.0000 shares 8/01/89 To 6/01/91 Total Return: 22.11% Annual Pct Rate: 11.50% Dollar-Cost Averaging: 1) Start: $17.8120 on 8/01/89 4) Sell Activity Over Period Open Shares : 0.0000 Sell Shares : 0.0000 Open Amount : $0.00 Sell Amount : $0.00 Open Avg Price: $0.0000 Sell Avg Price : $0.0000 Open Comm : $0.00 Sell Comm : $0.00 Open Value : $0.00 Close Open Amt : $0.00 Open Gain : $0.00 Close Open Comm: $0.00 Open Gain% : 0.00% Sell Gain : $0.00 2) Buy Activity Over Period Sell Gain% : 0.00% Buy Shares : 72.2260 5) End: $21.7500 on 6/01/91 Buy Amount : $1,100.00 Open Shares : 72.2260 Buy Avg Price : $15.2300 Open Amount : $1,100.00 Buy Comm : $0.00 Open Avg Price : $15.2300 3) Distributions Over Period Open Comm : $0.00 Distributions : $0.00 Open Value : $1,570.92 Fees : $0.00 Open Gain : $470.92 Open Gain% : 42.81% Your Performance $1,570.92 (End Value) Over Period + $0.00 (Sell Amount-Sell Comm) From 8/01/89 + $0.00 (Distributions-Fees) To 6/01/91 - $1,100.00 (Initial Value+Buy Amount+Buy Comm) ──────────────────────────────────────────────────────────────── $470.92 Total Period Gain 42.81% Annual Percentage Rate: 21.43% 18.8.1 Large Sales Since Capital Gainz only calculates the actual recorded performance, large sales with no subsequent repurchases negatively impact your calculated performance. No interest rate is assumed on the proceeds. Thus, if you sell $5000 from a balance of $10000 in a money market fund for a down payment on a car, and don't reinvest any more cash, your performance in that fund will slowly deteriorate since that $5000 is no longer earning interest. For this reason current yield, or total return, is more valuable for cash equivalents, such as money market funds, and some high yield securities. Capital Gainz Users Manual 199 18.9 Price History Price history allows you to quickly view a security's prices for given intervals. Distributions over the period are shown to help you account for price dips, since, for example, a $10 stock should fall to $9 after a $1 dividend. The high/low prices and dates, average price, and distributions per share over the period are given at the end of the report. In addition, the individual high and low prices are flagged with an H or an L. Generally, you'd like to see a steady or gradually increasing price for income producing securities. Here's a year's worth of prices for Carolina Power and Light, an income-oriented utility stock: Date Price Distribution/share H 12/27/91 $52.6250 11/27/91 $49.6250 11/01/91 DIV $0.7600 9/28/91 $49.1250 8/31/91 $47.3750 8/01/91 $47.4200 8/01/91 DIV $0.7600 7/27/91 $47.0000 6/29/91 $45.6250 6/01/91 $46.2500 5/02/91 $48.0580 5/02/91 DIV $0.7600 3/30/91 $47.5000 3/21/91 $47.2500 3/18/91 $47.8070 3/04/91 $47.2420 L 2/01/91 $45.2920 2/01/91 DIV $0.7600 1/02/91 $46.6520 High: $52.6250 on 12/27/91 Avg : $47.6564 Low: $45.2920 on 2/01/91 Distr: $3.0400 For growth securities, you'd like to see more of a general up- trend to make up for the lack of regular dividends. Chapter 17 contains an example of exporting price data, importing it into a spreadsheet, and then graphing it. Capital Gainz Users Manual 200 18.10 Portfolio Allocation The Allocation Report gives you a quick look at how your investments are spread out over the provided classes. Thus, you can see if you're being conservative or risky, and weigh this against your feeling on where the market's headed. Portfolio allocation guidelines are beyond the scope of this document. Determining factors for your portfolio's weightings include how much cash you have, how old you are, and your bullishness or bearishness on the market. One rule of thumb is: the shorter term your needs are, the more conservative you should be. If you are older and will soon need the cash for retirement, a market downturn would be catastrophic for an aggressive growth-oriented portfolio. However, this same market downturn would be unwelcome, but not devastating, to a young investor. This younger investor has time on his side, and will have many chances to recoup any losses and ride the market back up. Here's an example of a fairly conservative portfolio: Type Amount Pct ─────────────────────────────────────────────────────────── MMF Money Market Fund $29,251.26 38.23% LCS Large Company Stock $18,236.26 23.83% TFBF Tax Free Bond Fund $9,920.39 12.97% LCSF Large Company Stock Fund $6,839.59 8.94% TFMF Tax Free MT Bond Fund $6,770.76 8.85% SCS Small Company Stock $2,808.68 3.67% FSF Foreign Stock Fund $1,348.78 1.76% SCSF Small Company Stock Fund $1,339.56 1.75% ─────────────────────────────────────────────────────────── Cash: $29,251.26 38.23% Stocks: $21,044.94 27.50% Stock Funds: $9,527.93 12.45% Bonds : $0.00 0.00% Bond Funds : $16,691.15 21.81% Other : $0.00 0.00% Other Funds: $0.00 0.00% Total: $76,515.28 100.00% More than 38% of the portfolio is in cash equivalent holdings, and about 40% is in stock and stock mutual funds. The rest is in bond mutual funds. Capital Gainz Users Manual 201 Capital Gainz Users Manual 202 Chapter 19 - Detailed Information on Selling Methods [[Chapter omitted from online manual.]] Capital Gainz Users Manual 203 Capital Gainz Users Manual 204 Chapter 20 - Investment Strategies for the Small Investor [[Chapter omitted from online manual.]] Capital Gainz Users Manual 205 Capital Gainz Users Manual 206 Part IV: Advanced Program Details Chapter 21 - Performance, Memory, and Disk Usage This chapter discusses ways to improve the performance of Capital Gainz, as well as strategies to use extra memory and to reduce disk space overhead. 21.1 Improving Performance o Use a hard drive. If you are running Capital Gainz on high density floppies, poor performance will result from the slow read/write speed of floppy diskettes. o Maximize available conventional DOS memory. If you have old, unused TSRs and device drivers stealing DOS memory, get rid of them in your AUTOEXEC.BAT and CONFIG.SYS files. By all means, keep the ones you use - but your overall machine performance suffers when you needlessly take away memory. o Faster hard disks. On the older Intel 8086 and 8088 machines, MFM hard drives offered about 40-60MS access times. Next came RLL drives at about 28-40MS. Now, IDE and ESDI drives give you access times of under 20MS. For Capital Gainz and other file intensive software, a faster drive will make a world of difference. If you are running a small (say 20-60MB) MFM or RLL drive and are thinking about adding a second drive, look into converting to an IDE or ESDI drive instead. They are faster, and you can even find them at lower per megabyte costs. o Use date ranges when possible. If you have many activity records, specify a date range when viewing logs or generating reports. Focusing on a smaller range of records significantly reduces file I/O and processing. o Set up a RAM drive in expanded memory or extended memory. This significantly speeds up the generation of reports and the DOS Shell function, and should be used if you specify an external file viewer for reports. However, you should only set up RAM drives in expanded or extended memory - conventional memory is too precious. o Use the Rebuild/Pack Data Files option. In the Capital Gainz Utility Program, there is an option to Rebuild/Pack Data Files. If you perform changes and deletions, this function will let you squeeze out deleted record slots (which would eventually be reused), resulting in slightly better performance. Capital Gainz Users Manual 207 o Don't group activity detail reports by security. When you print out activity detail reports, you have the option of grouping the reports by log type or security. When printing by log type, Capital Gainz prints out all open shares logs, then all closed shares logs, and then all distribution logs. When grouping by security, the first security's open shares, closed shares, and distribution logs are printed, then the second security's open shares, closed shares, and distribution logs are printed, and so on. Report generation is much faster if done by log type, since the log files are scanned in key order. o Use a disk cache. Various software and hardware disk caching programs are available to speed up disk access times. These will affect Capital Gainz' performance to varying degrees. o Use a disk reorganizer occasionally. Over time, the free space on your hard drive becomes fragmented by use. Disk reorganization utilities, such as provided with the Norton Utilities or PCTools Deluxe, allow you to reorganize files into contiguous areas. This will shorten disk latency times. 21.2 Memory Capital Gainz requires a minimum of 512KB free conventional memory to run. This generally requires you to have 640KB of installed memory, as some amount of memory is consumed by DOS, file buffers, drivers, and TSRs. If you have less than 512KB of RAM available, you'll get an error indicating insufficient memory. You have a few options if you run out of memory: o Remove unnecessary drivers and TSRs. Make sure that you aren't loading unnecessary device drivers in your CONFIG.SYS file. One prime culprit is a RAM drive consuming conventional memory. If you have expanded or extended memory, use that memory for RAM drives. Also, if you have any unused TSRs (Terminate and Stay Resident programs) loaded in your AUTOEXEC.BAT, remove them. o Maintain multiple configurations. There are several programs available that let you easily maintain multiple CONFIG.SYS/AUTOEXEC.BAT pairs. These utilities let you switch between configurations, so you can keep optimal configurations for your favorite programs. It's a good idea to keep one 'clean' configuration, with the bare minimum number of device drivers and TSRs, leaving the maximum amount of memory free. I personally like AUTOCON, an easy-to-use shareware program. o Load device drivers and TSRs into expanded or extended memory. Many expanded and extended memory drivers let you load drivers and TSRs Capital Gainz Users Manual 208 above the DOS 640KB boundary, freeing up conventional memory. I use QEMM from Quarterdeck. A detailed discussion of expanded and extended memory is beyond the scope of this manual. But, with the growing size of programs, expanded/extended memory managers are rapidly becoming necessities for DOS-based personal computers. 21.2.1 RAM Drives and Virtual Memory If you get an error indicating insufficient memory when building tables or generating reports, you can set up Capital Gainz to use expanded/extended memory. You also can use expanded/extended memory to significantly speed up report generation, shelling to DOS, and executing DOS commands. However, if you run out of memory while just bringing up a screen or table, then you must free up conventional memory as discussed earlier. For Capital Gainz to use expanded/extended memory, it must first be assigned to a RAM drive. A RAM drive creates a virtual disk in memory. Access to files on a RAM drive is extremely fast, since the virtual disk operates at the speed of the system memory. Of course, files created on a RAM drive don't persist between reboots, so it's only useful for temporary data or files. The RAMDRIVE.SYS installable device driver is shipped with DOS. The general syntax for defining a RAM drive in your CONFIG.SYS is: DEVICE=path size sector directory memtype Where: path is the path for RAMDRIVE.SYS, such as \RAMDRIVE.SYS size is the size of the RAM drive in kilobytes sector is the sector size in bytes memtype is /A for expanded memory, or /E for extended memory See your system documentation for complete details. To set up a 640KB RAM drive in extended memory with \RAMDRIVE.SYS, you would add the following to your CONFIG.SYS: DEVICE=\RAMDRIVE.SYS 640 512 /E The RAM drive is assigned to the first unused drive. So, if you only have a single hard drive, drive C:, on your PC, then the RAM drive is Capital Gainz Users Manual 209 now drive D:. You can set up one or more RAM drives as needed. Capital Gainz can use RAM drives for two functions, as described below. 21.2.1.1 Temporary Files - Reports, DOS Shell You can tell Capital Gainz to use a RAM drive for temporary files on installation, or change CG.BAT later. In the CG.BAT file, set the CLATMP environment variable to your RAM drive: SET CLATMP=D: This drive is then used to swap out Capital Gainz when bringing up DOS or executing DOS commands. It also will be used for temporary files created when printing or viewing reports. You'll notice considerable performance improvements when using a RAM drive instead of a temporary drive on your hard disk for these operations. If you use an external file viewer, or shell to DOS frequently, you really need to use a RAM drive for temporary files. Be sure to make this drive big enough to handle the Capital Gainz memory image, which consumes about 500KB when swapped out. If you use an external file viewer, you must allow enough space for the program image and the temporary report file. About 600KB should suffice in most cases. 21.2.1.2 Virtual Memory - Tables, Reports Capital Gainz frequently builds tables in memory for quick interactive use. Examples include the activity log tables and the price history table. If you have many activity or price history records, then it's possible that Capital Gainz will run out of memory and abort with an error indicating insufficient memory. Five environment variables - CLAVM0, CLAVM1, CLAVM2, CLAVM3, CLAVM4 - are available to specify memory sources. These sources can be conventional memory, expanded memory, extended memory, or a hard disk. CLAVM0 is accessed first, and subsequent sources are accessed as needed. The syntax for setting a CLAVM variable is: Capital Gainz Users Manual 210 SET CLAVMx=path,size,ram-indicator Where: x is 0 to 4 path is the drive and directory path of the RAM drive or hard disk, or MEMORY for conventional memory size is the number of kilobytes to allocate, or, if path is MEMORY, the number of kilobytes to withhold from conventional memory ram-indicator is M for a RAM drive So, to tell Capital Gainz to allocate all available conventional memory first, and the next 512KB from RAM drive D: SET CLAVM0=MEMORY SET CLAVM1=D:\,512,M If you did not have a RAM drive, you could use a hard disk for the overflow (this example uses directory \TMP\VM): SET CLAVM0=MEMORY SET CLAVM1=C:\TMP\VM,512 21.3 Conserving Disk Space o The Capital Gainz Utility program is compressed. Using self- extracting archive technology, the Capital Gainz Utility Program decompresses into memory and runs when you execute it. This saves disk space in two ways. First, if you install the Utility Program to your hard disk, less disk space is required. Even better, it lets you keep the Utility Program on a floppy diskette, conserving even more precious hard disk space. Capital Gainz itself may eventually use this technology as well. Unfortunately, it requires extensive overlays to fit within DOS' 640KB conventional memory limit, and the 'decompress-and-run' technology does not work well with overlays. o Choose a reasonable price history interval. The price history interval setting in the User Settings Form lets you even out price/date combinations. But, if you actively update prices, it also helps you conserve disk space. Using the default interval of 28 days leaves you with at most 3 price history records per 31 day month for a given security, assuming one at the start, one after 28 days, and one after 30 days. On the other extreme, if you use an interval of 0 days, and update prices daily, you'll end up with 31 Capital Gainz Users Manual 211 price history records for the 31 day month. Multiply the 18 byte size of the price history record by the 28 additional records, then multiply that by the number of securities, and you'll see that those little records really add up. The 28 day default setting is reasonable - even going to 14 days would be fine. o Use the Rebuild/Pack Data Files option. If you change or delete many records, then you create 'holes' in your data files. The disk space used by deleted records is not returned to your hard disk, but it is reused by new records. To squeeze the data files down after a large delete, you can use the Rebuild/Pack Data Files option in the Capital Gainz Utility Program. o Don't install the documentation files, or remove them. If you have a printed users manual, you may not want to install the online documentation. The users manual consumes considerable disk space. If you installed it but want to delete it later: DEL *.DOC DEL CAPGNZ.IX However, once deleted, you cannot use the View Documentation option on the Main Menu to view the Users Manual. o Don't install the Capital Gainz Utility Program. As mentioned previously, you can run the Utility Program off the floppy diskette. Be sure to use a back up of the original. If you installed it and want to remove it, delete: CGUTIL.EXE o If you don't need multiple portfolios, don't use them. Each portfolio requires some additional overhead. Local security, open shares, closed shares, and distribution data and key files are associated with each portfolio. If you just want multiple instances of a security, then use different local security symbols and link them to the same global security. o Move unused portfolios, securities to a floppy disk. Use the Capital Gainz Utility Program to move inactive portfolios to a floppy disk and file it away. For inactive securities, first create a dummy portfolio and move it to a floppy disk. Then, use the Capital Gainz Utility Program to move the inactive local securities to the dummy portfolio on the floppy disk. o Clean up reports sent to DOS files. If you send reports to DOS files for later printing or viewing, or even for posterity, be sure to clean them up. If you regularly forget, and really don't want to keep the old reports on disk, at least specify not to append to Capital Gainz Users Manual 212 reports in the User Settings Form. That way, at least some old stuff may get written over. Alternatively, name them with a suffix of .TMP, so CG.BAT will delete them on startup. o Use the CG.BAT file to start Capital Gainz. Capital Gainz occasionally uses temporary files. These files have an extension of .TMP. The CG.BAT file deletes these files before starting Capital Gainz. Capital Gainz Users Manual 213 Capital Gainz Users Manual 214 Chapter 22 - File Formats 22.1 Data Files This section describes the composition of the Capital Gainz user data files, but does not provide details on the internal file structures. o Portfolio File: 122 bytes of data, plus index overhead for the 2 byte key in the key file, for each record. ! KEY: ID ID SHORT !Portfolio id (1-999) NAME STRING(30) !Portfolio name DESC1 STRING(30) !Portfolio desc 1 DESC2 STRING(30) !Portfolio desc 2 DESC3 STRING(30) !Portfolio desc 3 o Global Security File: 87 bytes of data, plus index overhead for the 5 byte key in the key file, for each record. ! KEY: SYM SYM STRING(5) !Security symbol NAME STRING(25) !Security name BROKER STRING(30) !Broker/Inv co ACCT_NO STRING(20) !Account number TYPE STRING(4) !Security type INT_FLG BYTE !True if interest (1/0) DIV_PER_YEAR SHORT !# of dividend distr per year o Broker/Investment Company File: 129 bytes of data, plus index overhead for the 30 byte key in the key file, for each record. ! KEY: NAME NAME STRING(30) !Broker / inv co name ADDRESS1 STRING(30) !First address line ADDRESS2 STRING(30) !Second address line CITY STRING(15) !City STATE STRING(2) !State ZIP STRING(10) !Zip Code PHONE STRING(12) !Phone number o Price History File: 18 bytes of data, plus index overhead for the 13 byte key in the key file, for each record. Capital Gainz Users Manual 215 ! KEY: SYMBOL,PRICE_DATE,TYPE SYMBOL STRING(5) !Global security symbol PRICE_DATE LONG !Price date TYPE STRING(4) !PRC/SPLT/DIV/INT/LTCG/STCG PRICE DECIMAL(8,4) !Price or Distr amt o User Settings File: 255 bytes of data for the single record. ID STRING(8) !'SETTINGS' REV STRING(4) !Revision number HOLD_PERIOD SHORT !Long term holding - in days CONF_ADD STRING(1) !Confirm adds? (Y/N) CONF_UPD STRING(1) !Confirm updates? (Y/N) CONF_DEL STRING(1) !Confirm deletes? (Y/N) REINVEST STRING(1) !Reinvest distr? (Y/N) LOG_TX STRING(1) !Log transactions? (Y/N) APPEND_RPT STRING(1) !Append report files? (Y/N) BACKUP_CMD STRING(60) !Backup files command HIST_PERIOD SHORT !Price history - in days LINES_PP SHORT !Report lines per page EXT_ASCII STRING(1) !Reports use line draw? (Y/N) COLORS BYTE,DIM(10,3,2) !Screen colors VFILE_CMD STRING(30) !View file command COMM_BASIS STRING(1) !Include comm in basis? PORT_ID LONG !Current portfolio id KEY_ACCEPT LONG !Accept key(CTRL-ENTER = 280) KEY_REJECT LONG !Reject key(CTRL-ESC = 279) PRICE_FILE STRING(30) !Price file read on startup SHORT_FLG STRING(1) !Use short sales? (Y/N) REDISTR STRING(1) !Redistribute sales? (Y/N) o Local Security File: 111 bytes of data, plus index overhead for the 5 byte key in the key file, for each record. Capital Gainz Users Manual 216 ! KEY: LSYM LSYM STRING(5) !Local security symbol GSYM STRING(5) !Global security symbol BROKER STRING(30) !Broker/Inv co ACCT_NO STRING(20) !Account number IRA STRING(1) !Non-taxable account? (Y/N) SELL_METHOD STRING(4) !Last sell method used OPN_SHARES DECIMAL(12,4) !Current open shares OPN_AMT DECIMAL(10,2) !Total basis for open shares OPN_COMM DECIMAL(8,2) !Total commission for open ST_OPN_SHARE DECIMAL(12,4) !Short term open shares ST_OPN_AMT DECIMAL(10,2) !Short term open basis ST_OPN_COMM DECIMAL(8,2) !Short term open commission MIG_DATE LONG !Last DCAT migration date DCAT_SEL_FLG LONG !NONE=0,ST=1,LT=3,BOTH SOLD=3 PRICE_PREC BYTE !Price Precision (2-4) SHARE_PREC BYTE !Share precision (2-4) o Open Shares File: 49 bytes of data, plus index overhead for the 9 byte key in the key file, for each record. ! KEY: SYMBOL,DATE SYMBOL STRING(5) !Local security symbol DATE LONG !Date shares bought SHARES DECIMAL(10,4) !Number of shares PRICE DECIMAL(8,4) !Price of shares bought AMT DECIMAL(8,2) !Total amount of purchase COMM DECIMAL(6,2) !Commission NOTES STRING(20) !Notes o Closed Shares File: 73 bytes of data, plus index overhead for the 10 byte key in the key file, for each record. ! KEY: SYMBOL,DATE,OPN_DATE SYMBOL STRING(5) !Local security symbol DATE LONG !Date sold ST_FLAG BYTE !LT=0,ST=1,SHORT SALE=2 SHARES DECIMAL(10,4) !Number of shares PRICE DECIMAL(8,4) !Share price AMT DECIMAL(8,2) !Total selling amount COMM DECIMAL(6,2) !Commission NOTES STRING(20) !Notes OPN_DATE LONG !Date shares bought OPN_PRICE DECIMAL(8,4) !Actual price of shares OPN_AMT DECIMAL(8,2) !Actual cost of shares OPN_COMM DECIMAL(6,2) !Commission when bought CLS_AMT DECIMAL(8,2) !If avg method, cost used o Distributions File: 43 bytes of data, plus index overhead for the Capital Gainz Users Manual 217 13 byte key in the key file, for each record. ! KEY: SYMBOL,DATE,TYPE SYMBOL STRING(5) !Local security symbol DATE LONG !Date of distribution/fee TYPE STRING(4) !Distribution type AMT DECIMAL(8,2) !Distribution amount PER_SHARE DECIMAL(8,4) !Per Share - 0 if FEE NOTES STRING(20) !Notes The first few records entered will result in somewhat larger disk usage than indicated by the above record sizes. This is due to initialization information and also minimum disk space allocation requirements. Space freed by deleted records is not automatically reclaimed, but the space is marked as free and subsequently reused. To reclaim space from deleted records immediately, use the Rebuild/Pack Data Files option in the Utility Program. 22.2 Other Files o Price Update File: the price update file is a comma-delimited file that you can create or edit with an ASCII text editor. It contains the following three fields: Global Security Symbol - 1-5 characters, quotes optional Price - decimal value, format 9999.9999 Date - MM/DD/YY, quotes optional If you omit the date for a record, the previously specified date is used. If you did not specify any dates, the current date is used. o CAPGNZ.INF: the Capital Gainz information file contains data read by Capital Gainz at startup. This file is created at installation, and you can modify it with an ASCII text editor. There is a single field per line: Program Directory - not used Documentation Directory - used to view user documentation Revision Number - determines if you need to upgrade Temporary Directory - for temporary files <Unused> <Unused> Registration Number Your Name Capital Gainz Users Manual 218 Chapter 23 - Running in Different Environments Most Capital Gainz users will run directly on top of the DOS command interpreter. However, other users will want to run under Windows, DESQview, or other environments. This chapter provides tips on running Capital Gainz in these other environments. 23.1 DOS 5.0 DOS 5.0 was a significant update to Microsoft's ubiquitous PC operating system. If you use the DOS 5.0 users' shell, then you should remap Capital Gainz' CTRL-ESC Form Reject key. This is because the new DOS task manager uses this key to swap a program out of memory and return to the shell. You could remap the CTRL-ESC key for DOS, but it's easier to remap it for Capital Gainz. See page 172 for how to remap the Form Accept and Form Reject keys. 23.2 Windows Microsoft Windows uses the CTRL-ESC key to bring up the Task List. You could remap the CTRL-ESC key for Windows, but it's easier to remap it for Capital Gainz. See page 172 for how to remap the Form Accept and Form Reject keys. Also, the Capital Gainz color settings appear differently under Windows. If you always run under Windows, you probably want to remap the screen colors. Otherwise, you can set the monitor mode for the window to monochrome before running Capital Gainz: MODE BW80 or MODE MONO Under Windows, you can start Capital Gainz from a DOS session, or automate the process with a PIF file as described below. 23.2.1 Creating a Capital Gainz PIF File PIF files are special files that tell Microsoft Windows how to run a non-Windows application. You create PIF files with the PIF editor, available in the Accessories Program Group. The settings available in the PIF editor will vary slightly depending on which mode you are running in - real mode, standard mode, or 386 enhanced mode. However, the following guidelines apply for any execution mode. To create a PIF file for Capital Gainz, first start up the PIF editor. Leave all the settings at their default values except the Capital Gainz Users Manual 219 following fields: Program Filename, Window Title, Start-up Directory, and Reserved Shortcut Keys. Assuming an installation directory of C:\CAPGNZ, you will use the following data: Program Filename: C:\CAPGNZ\CAPGNZ.EXE Window Title: Capital Gainz Start-up Directory: C:\CAPGNZ If you don't remap the CTRL-ESC Form Reject Key within Capital Gainz, you can reserve it by checking the Ctrl-Esc box in the Reserved Shortcut Keys section. You can change other settings as desired. For instance, you'll probably want to check the Windowed option under Display Usage to run Capital Gainz in a small window rather than full screen. Consult your Microsoft Windows Users Guide for detailed information about memory settings and execution settings. It's a good idea to save PIF files to the same directory as the installation directory for a program. Thus, you'll probably save your PIF file to C:\CAPGNZ\CAPGNZ.PIF. Finally, you'll want to add this PIF file to a Program Group in the Program Manager application. When creating a Program Item for a Program Group, specify the path of the PIF file in the Command Line field. You also may run Capital Gainz from the File Manager Application by double-clicking on the icon for a PIF file that you have created. 23.3 DESQview If you have DESQview from Quarterdeck, you can use the Add a Program function to add Capital Gainz to the Open Menu. For the Directory field, be sure to enter the directory where your data files are located. Suggested settings are: Program Name: Capital Gainz Keys to Use on Open Menu: CG Memory Size (in K):512 Program:C:\CAPGNZ\CAPGNZ.EXE Parameters: Directory:C:\CAPGNZ Options: can all be set to N In the Advanced Options screen, you can specify Y to Can Be Swapped Out. The most important setting is Memory Size. This should be at least 512. See the DESQview documentation for more details. Capital Gainz Users Manual 220 23.4 4DOS If you really want to get the most out of DOS, add 4DOS to your machine. This is especially true for expert users, or UNIX converts. 4DOS eliminates most of the shortcomings inherent in DOS's native command interpreter, COMMAND.COM. But enough of this endorsement. I regularly use 4DOS, both when running and developing Capital Gainz. No known incompatibilities exist. Capital Gainz Users Manual 221 Capital Gainz Users Manual 222 Chapter 24 - Command Line Switches Capital Gainz includes several options modifiable by command line settings and switches. You can alter the CG.BAT start up batch file to execute CAPGNZ.EXE with one or more of these switches. 24.1 Screen Blanking Capital Gainz has a built in screen blanker. After 10 minutes of inactivity, the monitor is blanked. Hit any key to bring back the previous display. The V switch changes the video timeout value. Thus, to blank the screen only after 30 minutes of inactivity: CAPGNZ V=30 To disable screen blanking: CAPGNZ V=0 If you use other screen savers, you should turn off Capital Gainz' screen blanking. 24.2 Sound To disable beeping, commonly used to signal errors, use the B switch: CAPGNZ B=NO 24.3 Enhanced Keyboard Use the E switch to specify that the system keyboard is an enhanced keyboard: CAPGNZ /E Capital Gainz Users Manual 223 Capital Gainz Users Manual 224 Chapter 25 - Error Messages 25.1 Severity Capital Gainz error messages are prefaced by their severity: o SYSTEM: fatal internal error, usually caused by corrupt data files. These errors reference a file or table name. o ABORT: fatal processing errors, usually caused by inconsistencies in data files. These errors usually reference a file or table name. o ERROR: error messages usually signalling an invalid operation or user entry. For instance, you can't sell 0 shares. o WARNING: informational message about user operations or entries. For instance, specifying a category selling method for a local security classified as a Stock generates a warning message. ERROR and WARNING messages do not signify internal problems, and you can continue. SYSTEM and ABORT messages cause Capital Gainz to terminate, resulting in a screen such as this: [[Screen not in online version.]] 25.1.1 Clarion Errors Capital Gainz is built with the Clarion Professional Developer. Sometimes, the fatal errors are caught before they get to Capital Gainz. These errors will appear on an abort screen, as shown above. The most common errors are: o Too Many Files Open: this error is caused by not allocating enough DOS file handles in CONFIG.SYS. If you told the INSTALL program not to modify your CONFIG.SYS, then you must manually edit it to change the 'FILES=' setting to at least 30. If you let install change your CONFIG.SYS and still got this error, you probably need to reboot your computer for it to take effect. You need to reboot after manually changing the setting. o Insufficient Memory: if you run out of memory while Capital Gainz is building a table, such as an activity log, then you need to either free up conventional memory or set up virtual memory. If you get this error just bringing up a screen, then you must free up some conventional memory. See page 208 for details on memory use and memory alternatives. Capital Gainz Users Manual 225 o Invalid Record Declaration: you are executing Capital Gainz against data files created with an older or newer version of Capital Gainz. You probably need to upgrade your data files. 25.1.2 Reporting Fatal Errors Errors that result in termination of Capital Gainz should be reported to us. Include as many of the following as possible: o The sequence of events leading up to the fatal error. o Whether or not you can duplicate the problem. o Copies of you data files, *.DAT and *.K01, on a diskette. If you don't have a recent backup, we'll try to repair and return them. o Copies of your AUTOEXEC.BAT and CONFIG.SYS files on diskette or paper, to help us determine if ill-behaved drivers or memory resident programs may be the culprit. o A description of your hardware, including as many of the following as possible: processor (XT, AT, 386, 486), processor speed (4Mhz, 8Mhz, 20Mhz, 25Mhz, 33Mhz), standard memory (512KB, 640KB), extended or expanded memory, and monitor (monochrome, CGA, EGA, VGA). o A copy of the CLARION.DMP file, on diskette or paper, that Capital Gainz creates in the directory you are running in. This file contains some useful information for diagnosing the problem. Also, any problems not explained in the manual or help screens should be reported. These may either be bugs or simply inadequately documented actions. 25.2 Messages The following is a list of error messages you may encounter, along with their meanings. Internal system errors are not listed. Can't execute blank command: You tried to execute a blank DOS command, such as invoking BACKUP without defining a backup command. Lines per page must be between 50 and 66: You specified an invalid number of lines per page for reports. Can't change number of shares. Delete record then resell: You can't change the number of shares in a closed shares record. Instead, delete it, unsell it, change the open shares record, and then resell it. Capital Gainz Users Manual 226 Can't sell more than the number of open shares: You tried to sell more shares than you have. Can't change sell method from Category Method: Once you've sold shares of a security that uses a category method, you shouldn't change the selling method for it. Should only use Category Methods for Mutual Funds: You are using a selling method for a security that's not a mutual fund. Invalid File Name: You specified a file path with a non-existent directory, or included an invalid character in the file name. Creates duplicate key: You tried to add a record with a key that is already in the file. Invalid Portfolio Id: You specified a non-existent or non-numeric portfolio ID. Program has been tampered with. Do not use: The Capital Gainz executable has been corrupted. Contact us immediately. Inconsistency with number of open shares: Internal consistency error between the number of shares in the local security, open shares, and closed shares records. No records!: No records have been defined in this table. You can't upgrade from a shareware version: Data file formats have changed, and you are trying to use old data files with a newer version of Capital Gainz. Only registered versions can upgrade old data files for use with newer versions. Local security not found: Internal inconsistency error when buying or selling shares. File Not Found: You tried to view user documentation that was not installed. ACCEPT and REJECT keys must be different: You tried to specify the same key combination for the ACCEPT and REJECT short-cut keys. Rename failed. Output is in TMP file: When printing a report to a file, Capital Gainz writes to a temporary file and then appends or overwrites the specified file. If the specified file is really a directory, then the temporary file can not be renamed. Precision must be between 2 and 4: You tried to specify an invalid precision for the local security. Capital Gainz Users Manual 227 Shares, price, amount: at least 2 must be specified: When recording a buy or a sell, you did not specify enough information. Per share or amount must be specified: When recording a distribution, you did not specify enough information. Error in price file. Format:Symbol,Price,mm/yy/dd: The price file you used for updating prices has one or more invalid entries. Could not execute DOS SHELL: When executing the backup command, shell to DOS operation, or external file viewer, the DOS shell could not be started. Could not create temporary program image: When executing the backup command, shell to DOS operation, or external file viewer, there was not enough disk space to store Capital Gainz' program image. DOS Error - consult your system documentation: When executing the backup command, shell to DOS operation, or external file viewer, DOS returned an error. Return of principal exceeds open amount: You tried to record a return of principal that exceeded the amount of your purchases. Value exceeds program limits: You entered a value for a purchase, sale, or distribution that is larger than Capital Gainz can handle. Try breaking the activity into multiple entries for the same date. Capital Gainz Users Manual 228 Index 4DOS . . . . . . . . . . 170, 221 capital gains . . . . . . . . . 98 ABORT . . . . . . . . . . . . . 225 category method . . . . . . . . . 8 account number . . . . . . . . 22 CG.BAT . . . . . . . 61, 210, 213 activity CGPRT.TMP . . . . . . . . . . . 64 detail report . . . . . . . 160 CGSCR.TMP . . . . . . . . . . . 64 logs . . . . . . . . . . . . 57 CGUTIL.EXE . . . . . . . . . . 62 map . . . . . . . . . . . . 15 Clarion . . . . . . . . . . . . 225 menu . . . . . . . . . . . . 67 CLARION.DMP . . . . . . . . . . 226 summary . . . . . 157, 194, 195 CLATMP . . . . . . . . . . . . 210 allocation clock . . . . . . . . . . . . . . 7 report . . . . . . . . 154, 201 CLOSE.DAT . . . . . . . . . . . 63 append report . . . . . . 147, 171 CLOSE.K01 . . . . . . . . . . . 63 As-Easy-As . . . . . . . . . . 185 closed shares . . . . . . . . . . 8 AUTOEXEC.BAT . . . . . 7, 207, 208 add . . . . . . . . . . . . 122 average price . . . . . . 192, 200 change . . . . . . . . . . . 122 backup delete . . . . . . . . . . . 123 batch file . . . . . . . . . 61 delete range . . . . . . . . 124 command . . . . . . . . . . 169 detail report . . . . . . . 162 data files . . . . . . . . . 169 file . . . . . . . . 18, 63, 217 form . . . . . . . . . . . . 177 gain/loss . . . . . . . . . 191 basis . . . . . . . . . . . . . . 7 log . . . . . . . . . . . . 121 beeping . . . . . . . . . . . . 223 unsell . . . . . . . . . . . 123 BROKER.DAT . . . . . . . . . . 63 colors BROKER.K01 . . . . . . . . . . 63 pick . . . . . . . . . . . . 174 broker/investment company . . . . 8 select screen . . . . . . . 172 add . . . . . . . . . . . . 143 comma-delimited format . . . . 186 change . . . . . . . . . . . 144 command keys . . . . . . . . . 11 delete . . . . . . . . . . . 145 commissions . . . . . . . . . . . 8 file . . . . . . . . 22, 63, 215 in basis . . . . . . . . . . 169 form . . . . . . . . . . . . 143 CONFIG.SYS 30, 33, 52, 207-209, 22 lookup . . . . . . . . . . . 104 5 map . . . . . . . . . . . . 15 confirm form . . . . . . . . . 168 report . . . . . . . . . . . 150 confirmation . . . . . . . . . 168 table . . . . . . . . . . . 143 conventional memory . . . . . . 207 buy shares . . . . . . . . . . 68 cover the fee . . . . . . . . . 97 form . . . . . . . . . . . . 68 CTRL-ENTER . . . . . . . . . . 172 buy-and-hold . . . . . . . . . 198 CTRL-ESC . . . . . . . . . 56, 219 CAPGNZ.DOC . . . . . . . . . . 64 current portfolio . . . . . . . 130 CAPGNZ.EXE . . . . . . . . . . 61 current yield . . . . . . . . . 193 CAPGNZ.HLP . . . . . . . . . . 62 date range . . . . . . . . . . 117 CAPGNZ.INF . . . . . . . . 62, 218 DCAT . . . . . . . . . . . . . 79 CAPGNZ.IX . . . . . . . . . . . 62 default printer . . . . . . . . 149 CAPGNZ.PIF . . . . . . . . . . 220 DESQview . . . . . . . . . . . 220 CAPGNZ.TX . . . . . . . . . . . 63 disk usage . . . . . . . . . . 218 CAPGNZBU.BAT . . . . . . . 61, 170 DISTR.DAT . . . . . . . . . . . 63 CAPGNZRS.BAT . . . . . . . . . 61 DISTR.K01 . . . . . . . . . . . 63 CAPGNZSH.COM . . . . . . . . . 61 distribution . . . . . . . . 8, 95 Capital Gainz Users Manual 229 add . . . . . . . . . . . . 126 GSEC.K01 . . . . . . . . . . . 63 change . . . . . . . . . . . 126 history . . . . . . . . . . . . 175 delete . . . . . . . . . . . 126 HISTORY.DOC . . . . . . . . . . 64 delete range . . . . . . . . 127 holding period . . . . . . . . 167 detail report . . . . . . . 164 ID . . . . . . . . . . . . . . 79 file . . . . . . . . 20, 63, 217 import . . . . . . . . . 183, 184 form . . . . . . . . . . . . 95 spreadsheet . . . . . . . . 185 log . . . . . . . . . . . . 125 improving performance . . . . . 207 reinvest . . . . . . . . 96, 168 inactive portfolios . . . . . . 212 type . . . . . . . . . . . 8, 97 inactive securities . . . . . . 212 type lookup . . . . . . . . 97 index files . . . . . . . . . . 56 dividend . . . . . . . . . . . 97 INSTALL dollar-cost . . . . . . . . . . 198 failures . . . . . . . . . . 33 DOS 5.0 . . . . . . . . . 172, 219 program . . . . . . . . . . 29 double category . . . . . . . . 79 INSTALL.EXE . . . . . . . . . . 62 DoublePrint . . . . . . . . . . 62 Insufficient Memory . . . . 59, 225 DP.EXE . . . . . . . . . . . . 62 interest . . . . . . . . . . . 97 editing fields . . . . . . . . 12 Invalid Record . . . . . . 59, 226 enhanced keyboard . . . . . . . 223 IRA fee . . . . . . . . . . . . 51 enter page form . . . . . . . . 149 keys table . . . . . . . . . . 172 error messages . . . . . . . . 225 last-in/first-out . . . . . . . 78 export . . . . . . . . . 183, 185 license . . . . . . . . . . 64, 175 fatal . . . . . . . . . . . . . 225 LICENSE.DOC . . . . . . . . . . 64 fee . . . . . . . . . . . . . 8, 98 LIFO . . . . . . . . . . . . . 78 report . . . . . . . . . . . 156 line draw chars . . . . . 147, 172 field limits . . . . . . . . . 25 lines per page . . . . . 147, 172 FIFO . . . . . . . . . . . . . 78 LIST . . . . . . . . . . . . . 171 file form . . . . . . . . . . . 149 load . . . . . . . . . . . . 9, 56 file format changes . . . . . . 178 local and global securities . . 53 file relationships . . . . . . 16 local files . . . . . . . . . . 16 file viewer local security . . . . . . . . . 9 external . . . . . . . . . . 171 add . . . . . . . . . . . . 102 internal . . . . . . . 148, 170 change . . . . . . . . . . . 105 first-in/first-out . . . . . . 78 copy or move . . . . . . . . 181 form accept key . . . . . . . . 172 copy/move . . . . . . . . . 181 fraction-to-decimal table . . . 69 delete . . . . . . . . . . . 106 global files . . . . . . . . . 20 file . . . . . . . . 16, 63, 216 global security . . . . . . . . . 9 fixup . . . . . . . . . . . 115 add . . . . . . . . . . . . 134 lookup . . . . . . . . . 70, 182 change . . . . . . . . 106, 140 map . . . . . . . . . . . . 15 delete . . . . . . . . . . . 141 select . . . . . . . . . . . 157 file . . . . . . . . 21, 63, 215 symbol . . . . . . . . . 16, 21 form . . . . . . . . . . . . 134 table . . . . . . . . . . . 101 map . . . . . . . . . . . . 15 log maintenance report . . . . . . . . . . . 151 map . . . . . . . . . . . . 15 symbol . . . . . . . . . 16, 21 menu . . . . . . . . . . . . 117 table . . . . . . . . . . . 133 logging transactions . . . . . 58 go to page . . . . . . . . . . 149 long term capital gains . . . . 98 GSEC.DAT . . . . . . . . . . . 63 LSEC.DAT . . . . . . . . . . . 63 Capital Gainz Users Manual 230 LSEC.K01 . . . . . . . . . . . 63 PRC_HST.K01 . . . . . . . . . . 63 main map . . . . . . . . . . . 15 price history . . . . . . . 9, 200 main menu . . . . . . . . . . . 65 add . . . . . . . . . . . . 108 MAX . . . . . . . . . . . . . . 78 change . . . . . . . . . . . 110 max gain/min loss . . . . . . . 78 delete . . . . . . . . . . . 110 MIN . . . . . . . . . . . . . . 78 delete range . . . . . . . . 110 min gain/max loss . . . . . . . 78 file . . . . . . . . 23, 63, 215 mixed activity interval . . . . . 51, 168, 211 detail report . . . . . . . 165 rebuild . . . . . . . . . . 186 OMB.ASP . . . . . . . . . . . . 64 report . . . . . . . . . . . 159 online help file . . . . . . . 62 table . . . . . . . . . . . 106 online users manual . . . . . . 64 price precision . . . . . 103, 189 open shares . . . . . . . . . . . 9 price type . . . . . . . . . . 109 add . . . . . . . . . . . . 119 lookup . . . . . . . . . . . 109 change . . . . . . . . . . . 119 price update . . . . . . . . . 105 delete . . . . . . . . . . . 119 file . . . . . . . . . 112, 218 delete range . . . . . . . . 120 form . . . . . . . . . . . . 111 detail report . . . . . . . 161 screen . . . . . . . . . . . 111 file . . . . . . . . 18, 63, 217 skeleton file . . . . . . . 111 gain/loss . . . . . . . . . 190 startup . . . . . . . . . . 171 log . . . . . . . . . . . . 118 PRIN . . . . . . . . . . . . . 93 OPEN.DAT . . . . . . . . . . . 63 print OPEN.K01 . . . . . . . . . . . 63 to a file . . . . . . . . . 149 pack data files . . . 186, 207, 212 to the printer . . . . . . . 149 performance . . . . . . . . . . 195 to the screen . . . . . . . 148 calculation . . . . . . . . 195 purchase . . . . . . . . . . . 68 components . . . . . . . . . 196 RAM drive . . . . . . . . 207, 209 PIF file . . . . . . . . . . . 219 RAMDRIVE.SYS . . . . . . . . . 209 PKZIP . . . . . . . . . . . . . 170 read me file . . . . . . . . . 175 point to . . . . . . . . . . . 10 README.DOC . . . . . . . . . . 64 PORT.DAT . . . . . . . . . . . 63 rebuild price history . . . . . 186 PORT.K01 . . . . . . . . . . . 63 reclaim space . . . . . . . . . 187 portfolio . . . . . . . . . . . . 9 redistribute proceeds . . . 77, 169 add . . . . . . . . . . . . 130 reinvest distribution . . . 96, 168 allocation . . . . . . . . . 201 report change . . . . . . . . . . . 131 map . . . . . . . . . . . . 15 copy or move . . . . . . . . 179 menu . . . . . . . . . . . . 147 copy/move . . . . . . . . . 179 restore current . . . . . . . . . . 130 batch file . . . . . . . . . 61 delete . . . . . . . . . . . 131 return of principal 9, 80, 93, 98, detail report . . . . . . . 152 123 file . . . . . . . . 21, 63, 215 rounding . . . . . . . . . . . 189 form . . . . . . . . . . . . 130 sale . . . . . . . . . . . . . 75 id . . . . . . . . . . . . . 130 SCAT . . . . . . . . . . . . . 79 lookup table . . . . . . . . 181 Schedule B map . . . . . . . . . . . . 15 report . . . . . . . . . . . 156 summary . . . . . . . . . . 149 Schedule D-1 table . . . . . . . . . . . 129 report . . . . . . . . . . . 156 PRC_HST.DAT . . . . . . . . . . 63 screen Capital Gainz Users Manual 231 blanker . . . . . . . . . . 223 Windows . . . . . . . . . 172, 219 kinds . . . . . . . . . . . 173 types . . . . . . . . . . . 172 security . . . . . . . . . . . . 9 type . . . . . . . . . . . . 10 type lookup . . . . . . . . 135 types . . . . . . . . . . . 135 select data file menu . . . . . 183 select open shares to sell . . 79 sell method . . . . . . . . . . 10 sell shares form . . . . . . . . . . . . 75 selling method . . . . . . . . 78 lookup . . . . . . . . . . . 78 SETTINGS.DAT . . . . . . . . . 63 shares precision . . . . 103, 189 shares sold report . . . . . . . . . . . 77 short sale . . . . . . . . 57, 80 short term capital gains . . . 98 SHRT . . . . . . . . . . . . . 80 single category . . . . . . . . 79 specific identity . . . . . . . 79 startup batch file . . . . . . 61 stock dividend . . . . . . . . 113 stock split . . . . . . . . . . 113 form . . . . . . . . . . . . 113 ratio . . . . . . . . . . . 114 switches . . . . . . . . . . . 223 system function flow . . . . . 15 task manager . . . . . . . . . 219 temporary files . . . 63, 210, 213 Too Many Files Open . . . . 52, 225 total return . . . . . . 190, 194 unselling closed shares . . . . 123 upgrade . . . . . . . . . . . . 178 form . . . . . . . . . . . . 178 user settings . . . . . . . . . 167 change . . . . . . . . . . . 167 file . . . . . . . . 24, 63, 216 form . . . . . . . . . . . . 167 report . . . . . . . . . . . 152 users manual . . . . . . . . . 175 index . . . . . . . . . . . 62 utility menu . . . . . . . . . 178 Utility Program . . . . . . 62, 177 view documentation . . . . . . 175 map . . . . . . . . . . . . 15 virtual memory . . . . . . . . 210 Capital Gainz Users Manual 232 Capital Gainz Users Manual 233