Brokerage Balances

Your brokerage account tracks cash and holdings, each split between borrowed and personal funding.

Cash balances

BalanceDescription
Borrowed CashCash from borrowed funds, not yet invested.
Personal CashCash that's yours — dividends, gains, deposits. Not tied to borrowed funds.

Holdings

Each security tracks:

AttributeDescription
UnitsNumber of shares held
Total Cost BaseTotal adjusted cost base (ACB)
Borrowed Cost BasePortion of cost funded with borrowed money
Personal Cost BasePortion of cost funded with your own money

The borrowed/personal ratio determines how sale proceeds and return of capital are allocated.

How balances change

  • Borrows → increase borrowed cash
  • Deposits → increase personal cash
  • Purchases → decrease borrowed and/or personal cash (you choose the split), create/increase holdings
  • Sales → borrowed cost recovery returns to borrowed cash; personal cost recovery plus any gain goes to personal cash
  • Distributions → income goes to personal cash; RoC is split by the holding's borrowed/personal ratio between borrowed and personal cash
  • Withdrawals → decrease borrowed and/or personal cash (you choose the split; personal first by default)

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