Negative Totals as a Result of Transactions

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

Click to enlarge

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 60,000 shares was recorded on 8/23/2018. As of that date, only 54,166 of the shares had vested, with the remaining 45,834 shares unvested. In the recorded cancellation, however, 60,000 vested shares were canceled, resulting in a final balance of (5,834) vested shares and 45,834 unvested shares. This problem can be fixed by adjusting the cancellation transaction to reflect a cancellation of 54,166 vested shares.

Click to enlarge

Related Articles