Conference nyoss1::market_investing

1002.0. "SAVE fund balances don't match weekly contributions?" by MPOS02::PEREZ (Trust, but ALWAYS verify!) Wed Apr 24 1996 22:25

    I just received the quarterly SAVE statement and it doesn't APPEAR to
    match correctly...  I presume I'm just missing something but I need
    some information.  Here's an example NOT taken from the statement (my
    SO doesn't want the real numbers in here with all you sharks!  :^)  ):
    
        Opening balance     5000.00
        Your contributions   150.00
        Company match         50.00
        Gains/losses         200.00
        Dividends             25.00
    
        Closing Balance     5425.00
    
        Units/shares        
        12/31/95             362.06
        3/31/96              380.43
    
        Unit/share price
    	12/31/95              13.81 
    	3/31/96               14.26
    
    
    SO, according to this both the beginning balance and ending balances
    match based on the share price times the number of shares.  Cool.... 
    EXCEPT that I'm transfering the weekly invested amount from checking
    into the account every week.  So, shares get bought every week.  And at
    the end I get the gains and dividends and reinvest them too...  And I
    WIND UP WITH 390 shares instead of 380.43.  In fact, in my actual
    account if I DIDN'T BUY A SINGLE SHARE ALL QUARTER, JUST THE GAINS AND
    DIVIDEND WOULD GIVE ME MORE SHARES THAN WERE BOUGHT ALL QUARTER...
    
    Things matched PRETTY closely on 3/31 BEFORE I added the gains and
    dividends, but every other investment I have shows the final balance
    AFTER gains and dividends and stuff...
    
    Shouldn't I be able to take the beginning shares, add the shares bought
    each week, AND the shares bought from the gains, AND the shares bought
    with the dividends and get the SAME ending balance?  What the heck is
    going on?  What am I missing?  How do we get weekly share prices for
    these funds?  BTW:  All three funds are doing the same thing...

    Even this is the wrong conference, I'll give an answer :=)

>>    Shouldn't I be able to take the beginning shares, add the shares bought
>>    each week, AND the shares bought from the gains, AND the shares bought
>>    with the dividends and get the SAME ending balance?  What the heck is
>>    going on?  What am I missing?  How do we get weekly share prices for
>>    these funds?  BTW:  All three funds are doing the same thing...


    I believe that you misinterpreted the GAINS/LOSS portion of your 
statement. 

    The GAINS/LOSSES states what the value of the shares you own did during
the period.  It does not mean that $200 was used to purchase new shares.


-rob

    Ahhhhhhhhhhh...  Didn't strike me at all last night, but I think I see. 
    The gains would be the amount received by the share price difference
    between the beginning and ending balances, right?  
    
    So, the only change in share numbers would be from those bought weekly,
    AND those bought with the dividends?  I"ll try re-figuring tonight and
    see if it works out closer...