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Reverse stock split removes all shares

unknown

After a couple of reverse stock splits the last one effectively removed all my shares. Having only 9 shares a 1:12 reverse stock split essentially removed my 9 shares (to zero) (and charged me $38.00 for the privilege). However, Quicken does not handle this situation at all. It records the reverse stock split ration (old vs new) which simply adds 1/12 of a share to my account. The problem is that the old shares (9) and the new shares (0) creates a ratio that is too big (greater than 1000) so Quicken rejects it.

How can I get this transaction properly entered?

Or, how should I reconcile my share balance so that it is properly set to zero? A simple balance adjustment?

Thanks!

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Tom Young

I just did a test in a test file of a 1 for 12 reverse stock split and it worked perfectly, leaving me with .75 shares. (Quicken Premier Windows 2018).

What's your actual, real-world situation? Typically splits that result in fractional shares do result in a cash in lieu transaction but I do know that's not always the case; sometimes no fractional shares get issued. If for whatever reason the reverse split isn't working for you and there's no prospect of receiving cash for your fractional share then it does seem like a Remove action is the easiest way to go.

unknown

Exactly what I put above. I had 9 shares. The corp did a reverse split 1:12, declared that I had less than 1 share and removed it. Now I have zero shares, *poof*, and I had to pay $38.00 for the privilege. :-)

The brokerage is not providing a detailed breakdown of the $38.00 other than "Mandatory Reorg Fee Charged". The actual split transaction says, "... HOLDINGS INC COM REVERSE SPLIT @ 1:12 INTO xxx" with a zero dollar amount associated with it. After that transaction my holdings in the old corp, or the new corp, is zero. Perhaps they kicked in a couple bucks in the $38.00 charge, but it is not detailed out that way.

Sherlock

Exactly what I put above. I had 9 shares. The corp did a reverse split 1:12, declared that I had less than 1 share and removed it. Now I have zero shares, *poof*, and I had to pay $38.00 for the privilege. :-)

The brokerage is not providing a detailed breakdown of the $38.00 other than "Mandatory Reorg Fee Charged". The actual split transaction says, "... HOLDINGS INC COM REVERSE SPLIT @ 1:12 INTO xxx" with a zero dollar amount associated with it. After that transaction my holdings in the old corp, or the new corp, is zero. Perhaps they kicked in a couple bucks in the $38.00 charge, but it is not detailed out that way.

I suspect you were required to sell the 3/4 of a share (a cash-in-lieu payment). It may take sometime before the payment is issued. I suggest you enter the Stock Split specifying 1 for 12 shares and the Sell - Shares Sold transaction for the 3/4 of a share based of the share price after the split. (You may record the Mandatory Reorg Fee in the Commission field.)

Tom Young

"After a couple of reverse stock splits the last one effectively removed
all my shares. Having only 9 shares a 1:12 reverse stock split
essentially removed my 9 shares (to zero)"

Since this is a forum for getting help about Quicken I thought that QUICKEN's reverse split brought you down to 0 shares, and that was what I was responding to. If the broker sent down a 12:1 reverse split AND a Remove action for the remaining 3/4 of a share then my guess is that no cash in lieu is forthcoming. Of course knowing the company involved should solve the issue as they have to report to you how these transactions are effected.

unknown

"After a couple of reverse stock splits the last one effectively removed
all my shares. Having only 9 shares a 1:12 reverse stock split
essentially removed my 9 shares (to zero)"

Since this is a forum for getting help about Quicken I thought that QUICKEN's reverse split brought you down to 0 shares, and that was what I was responding to. If the broker sent down a 12:1 reverse split AND a Remove action for the remaining 3/4 of a share then my guess is that no cash in lieu is forthcoming. Of course knowing the company involved should solve the issue as they have to report to you how these transactions are effected.

That's fine. English is a slippery language. :-) I was trying to get Quicken to reflect what seemed to be reality rather than trying to understand why Quicken did something. Sherlock's comment is what I think will/has happened, so I just need to wait for the dust to settle.

Thanks for the help!

unknown

Exactly what I put above. I had 9 shares. The corp did a reverse split 1:12, declared that I had less than 1 share and removed it. Now I have zero shares, *poof*, and I had to pay $38.00 for the privilege. :-)

The brokerage is not providing a detailed breakdown of the $38.00 other than "Mandatory Reorg Fee Charged". The actual split transaction says, "... HOLDINGS INC COM REVERSE SPLIT @ 1:12 INTO xxx" with a zero dollar amount associated with it. After that transaction my holdings in the old corp, or the new corp, is zero. Perhaps they kicked in a couple bucks in the $38.00 charge, but it is not detailed out that way.

Thanks!

unknown

Exactly what I put above. I had 9 shares. The corp did a reverse split 1:12, declared that I had less than 1 share and removed it. Now I have zero shares, *poof*, and I had to pay $38.00 for the privilege. :-)

The brokerage is not providing a detailed breakdown of the $38.00 other than "Mandatory Reorg Fee Charged". The actual split transaction says, "... HOLDINGS INC COM REVERSE SPLIT @ 1:12 INTO xxx" with a zero dollar amount associated with it. After that transaction my holdings in the old corp, or the new corp, is zero. Perhaps they kicked in a couple bucks in the $38.00 charge, but it is not detailed out that way.

And $3.50 just showed up in my account to purchase my remaining 0.75 shares. They had sold it the same time as the split but took their time to deposit the money. That added to the overall confusion about something that should've been simple. Not sure if it is a broker issue or just the noise associated with this transaction. But it is all resolved now.

Thanks again, everyone!