Negative Totals as a Result of Transactions

Sometimes, you will find yourself with negative share totals on a shareholder or certificate page.



Negative share totals such as that shown above are often caused by secondary transactions (cancellations, exercises, etc.) that do not combine vested and unvested totals. For example, in the certificate shown above, a cancellation of all 100,000 shares was recorded on 7/1/2016. As of that date, only 50,000 of the shares had vested, with the remaining 50,000 shares unvested. In the recorded cancellation, however, 100,000 vested shares were canceled, resulting in a final balance of (50,000) vested shares and 50,000 unvested shares. This problem can be fixed by adjusting the cancellation transaction to reflect a cancellation of 50,000 vested shares and 50,000 unvested shares.


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