Seraf applies the same IRR calculation as Microsoft Excel’s XIRR formula, including dates and cash flow from the Transaction Register of your account.
The IRR is calculated based on any change in the cash position. A cash outflow occurs whenever an investor uses cash to make a purchase (e.g. purchase stock or a note, exercise warrants, pay a fee). A cash inflow occurs whenever cash is returned (e.g. sale of stock, note redemption for cash, dividend). Any transaction that does not have an element of cash going out or coming in will not have an impact on IRR. When IRR is computed, it's done using the actual dates for each transaction.
For further information on exactly which type of Seraf transactions are included in the IRR calculation, see the chart below. Note that (–) indicates a cash outflow and (+) indicates a cash inflow.
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