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Scottrade sold or Citigroup bought my shares of stock...without my knowledge?
Ed_McCarron:
--- Quote from: MonMotha on October 08, 2011, 03:59:17 am ---Splits and merges don't really alter the valuation or equity distribution in a company; they're basically a way to keep the per-share price in a reasonable range. Whether you own 20 shares at $10 or 2 shares at $100 doesn't really matter much except that it's hard to trade less than a single share, so it's handy to keep the per-share to a reasonable level so that your stock is more easily traded, and most exchanges also won't list you at all if your per-share is less than $1, so that puts a firm bound on the bottom for such issues.
--- End quote ---
Lets ask this question an easier way: Are there any topics you -aren't- well versed in? ;D
danny_galaga:
--- Quote from: Hoopz on October 08, 2011, 07:13:56 am ---Stock exchanges don't trade fractional shares. When your shares are held in "street name" (with a brokerage firm) as opposed to someone actually having a certificate in their possession, the brokerage firm handles all fractional shares for all of their clients for that particular security. Fractional shares usually occur when a client decides to reinvest their dividends. The brokerage firm has X number of total shares, they receive a dividend and they need to buy more shares. Whole shares are purchased from the exchange and are divided proportionally between all of the clients. The fractional amount that is left is held in the broker's house account.
If you think Apple and Google's price is high, check out Buffett's company Berkshire Hathaway (Class A). Ticker is BRKA. It's at $108,100 per share. Good old Warren doesn't believe in stock splits.
--- End quote ---
I've read that share brokers are proud to have ONE Berkshire Hathaway share in their portfolio ;D . That's worth more than than the thousands of shares in the 13 companies I have :o
Hypernova, I would have thought you would get written advice that this was going to happen? I know in Australia it's the norm. I don't think a company can make any major changes (like a split, or being bought out, or a cash return etc) without advising it's shareholders.
Benevolance:
Rather than split, Berkshire introduced a class B share that currently trades around $75.
Necro:
I learned about reverse splits when my first employer did one right before they IPO'd - basically screwing all the staff since what they had been telling us the stock price was going to be was AFTER the 4:1 reverse split, effectively making our options - provided upon hiring - worth a quarter of what they'd been telling us they'd be worth.
Gotta love it.
Hoopz:
--- Quote from: Necro on October 17, 2011, 03:22:17 pm ---I learned about reverse splits when my first employer did one right before they IPO'd - basically screwing all the staff since what they had been telling us the stock price was going to be was AFTER the 4:1 reverse split, effectively making our options - provided upon hiring - worth a quarter of what they'd been telling us they'd be worth.
Gotta love it.
--- End quote ---
Something else has to be happening here. Whenever there is a change like a split, reverse split, etc, the total value of your investment does not change (excluding a change in market price). So they had a reverse split, your number of shares decreases, but the exercise price would have increased making it the same value as before. Now, the market price may have moved on the stock but the exercise price on your stock options won't change so the total package will be the same before the split as after.
Whatever firm handled your employee stock options should have explained that to you though.
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