2

I have a short position. It reverse split and now I’m left with a fractional share.

How do I buy to cover on E*Trade when it won’t accept the .5 share along with the others? Why wouldn’t they round up or down?

1
  • The fractional share might get auto-treated once you handle the full shares. Two of my brokers claim they do it so. Try it.
    – Aganju
    Aug 29, 2020 at 0:13

1 Answer 1

1

Fractional shares due to a reverse split are handled a number of ways and it depends on the company and the broker.

If your broker offers the ability to trade fractional shares then there's no problem.

Some brokers will sell your soon to be fractional shares before the split.

If you have fractional shares after a reverse split, for the fractional shares you may receive:

  • A cash-in-lieu payment

  • Additional shares rounding up to a whole number

  • Nothing

In your case, you should call E*Trade and ask them what the solution is.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .