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  1. Default Reverse Split brokerage mistake...

    Hey everyone,

    An interesting event happened to me last week and I'm looking for any advice or if this has happened to anyone before...

    I owned 200k shares of a company. This company was trading at 0.02/share when the company announced a 5:1 reverse split. So my current market value is $4k.

    As company began trading at the post-consolidation level, so $0.10/share ($0.02/share x 5), theoretically I would have 40,000 shares (200k/5). This was not the case.

    My account still had 200k shares but now at $0.10/shares. For the fun of it, I put in a sell of 200k at $0.09 and it was filled immediately. The money is in my "buying power" still as the trade has not yet settled.

    My question is has anyone seen this happen before. Basically I am thinking my online broker made a mistake and did not cut my shares by 5. Can they reverse the trade? Do I owe them 160,000 shares? Did I beat my bank?? As I said the money is still in my buying power and am now on day 2 post-trade. Any advice/experience would be appreciated...

  2. Default

    Ye don't spend that money yet. They'll probably figure it out...or maybe not..if not, it's what they get for having crappy, legacy software.
    (edit) And on second thought...they'll have a hell of a time dealing with the fact that they allowed you to sell 200k shares when in fact you only owned 40k...which means when they figure it out they will have to find/borrow shares and your resulting position will be short 160k shares at .09 per share. weird. What's the ticker?

  3. Default

    Or maybe they will just flatten your 40k at .09 and sort out the short difference on their end...but I'm betting they will figure it out.

  4. Default

    They will figure it out...I've had a very similar thing happen to me.

 

 

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