Close a holding in Navexa when shares have been cancelled, become worthless or your ownership has ended, without treating a delisting or missing market price as a disposal.
When To Close The Holding
Close a holding when the underlying shares or units have ceased to exist or you no longer own them.
Shares are officially cancelled under a corporate action.
A company completes a winding-up and the remaining shares are cancelled.
Your ownership is extinguished as part of a takeover, scheme or other event.
The investment is confirmed as worthless and no remaining ownership or proceeds exist.
Do not close a holding simply because the stock has been delisted, Navexa shows a $0 or missing market price, trading has stopped, or a company is still going through liquidation and further proceeds may be possible.
A delisted or unpriced investment may still represent shares that you own.
Use A Cancellation Trade
A Cancellation records shares or units that have been cancelled.
It reduces the number of units you hold.
It can close the holding when all remaining units are cancelled.
It may result in a gain or loss depending on the details of the event.
Use the company announcement, registry statement or broker notice to confirm the effective date, number of shares cancelled and any consideration received.
For a full explanation of transaction types, see Trade Types in Navexa: What They Mean & When to Use Them.
Add A Cancellation
Record a cancellation against the relevant holding once the event details are confirmed.
Open Portfolio.
Select the relevant holding.
Open the Trades tab.
Select Add Trade / Adjustment.
Choose Cancellation.
Enter the effective date and number of units cancelled.
Enter the applicable price or consideration.
Select Save.
If all remaining units are cancelled, Navexa will close the holding.
When To Enter $0
Enter a price of $0 only when the shares have been cancelled or extinguished and no consideration was received.
If shareholders received cash or another form of consideration, record the details of the actual event rather than assuming the shares were cancelled for no value.
For example, a company in liquidation may make one or more capital distributions before its remaining shares are eventually cancelled.
Do Not Use A Sell
A Sell records an actual disposal of shares.
If the shares were cancelled without a market sale, a Cancellation more accurately reflects the event in Navexa. If you sold the shares, use a Sell and enter the genuine sale details.
Check For Earlier Payments
Before closing a holding, check whether the company made payments or completed corporate actions that should also be recorded.
It may have returned capital to shareholders.
It may have paid cash consideration under a scheme or takeover.
It may have issued replacement shares.
It may have completed another restructure before cancelling the original shares.
A Return Of Capital, for example, reduces the holding's cost base without reducing the number of units held.
Record each event based on what occurred rather than using a single $0 Cancellation to represent the entire process.
If The Company Is Still Liquidating
Leave the holding open if a company is still being wound up and the shares have not been cancelled.
A current market value of $0 does not necessarily mean the shares should be removed from Navexa. Wait until the relevant company, registry or broker documentation confirms the final event before recording the cancellation.
Remember, this is general information, not personal financial advice.