Record an Issuance of Share
When one of your Business Entities issues shares to a Registered Holder, you'll record that issuance as an Issue Transaction on the Stockholder/Shareholder Summary Screen.
We will use the following scenario to demonstrate this task: Ironwood Equity Solutions issued 5,000,000 shares of Common stock Securities to the Registered Holder Pliant Holdings on February 28th, 2023. We’ve already created a record of the Common stock on the Security Screen and entered Authorized Amendments allowing issuance of up to 7,000,000 shares on the Authorized Summary Screen. Now we need to record the issuance on the Stockholder/Shareholder Summary Screen.
Navigate to the Stockholder/Shareholder Summary Screen of the entity issuing the shares. In this scenario, we’ll navigate to Stockholder/Shareholder Summary Screen for Ironwood Equity Solutions.
Select the appropriate Transaction Type from the drop-down menu. In this scenario, we’ll select Issue.
Click New Security Transaction.
A new Issue Transaction pane will open. Select the Entity to whom the shares were legally issued through the look up list. In this scenario, we’ll select Pliant Holdings.
The Beneficial Holder is the entity who ultimately benefits from the shares. GEMS will automatically copy down the Registered Holder entity into this field since they're often the same, but you may change it if needed. In this scenario, Pliant Holdings is both the Registered and Beneficial Holder, so we'll leave Pliant Holdings in this field.
Select the Security Record being issued to the Registered Holder. In this scenario, we'll select Common stock.
Enter the date when the issuance occurred. In this scenario, we'll enter Feb 28 2023.
Enter the number of Securities being issued. This value cannot exceed the amount of the Security involved as set by Authorized Amendments on the Authorized Summary Screen. In this scenario, we'll enter 5000000.
GEMS automatically populates this field with the value of the Securities being issued based on the par value of the Securities and the value entered in the Number Issued. In this scenario, GEMS calculated a value of 50,000 based on the par value of the Common stock selected earlier and the 5,000,000 number of shares issued.
GEMS automatically completes this field with the currency the Securities were purchased in if the Security record has a Currency value. In this scenario, GEMS has selected (United States) Dollar based on the properties of the Common stock.
Complete the additional optional fields on the page as needed, then click SAVE.
When setting an initial balance of shares held by a Registered Holder, complete the above steps using the Balance Transaction Type.