Stocks "reorganization" fees

[louisvillekid]

WoW!

I have a handful of different brokerage/trading accts.

Most are small, under $1000

One acct, i've bought a variety of high interest dividend paying stocks, just to let sit and see how they play out.

Well....this took a turn i didn't expect.

I only own 1, maybe 2 or 3 shares of all these different stocks in this one particular acct.

I hadn't checked the balance in about a month.

I check , and i'm down well over $100 - AND it says i'm in the red and owe 65 bucks

My available cash balance is $0 - my 2 pending orders were cancelled.

I check transactions - and in past 2/3 weeks i've had 3 separate -$38 charges for "reorganization" fees.

Ha. I guess if you own 100s or 1000s of shares of a stock, eating 38 bucks ain't bad. But when you own 1, or 2 shares of some BS $5 stock that pays a high dividend percentage - being hit with a $38 fee is ridiculous.

Apparently the 3 that triggered this "reorganization" were BKEP, NWG and ORC

What's odd, is that I own T(at&t) and they had some sort of spilt or merger or selloff a while back, and i didn't get hit with a -38 fee back then.

But i'm selling all my positions in TGA, SDIV, NLY, MPW, BCS, AGNC, FOF, SBRA, KMI, and MITT

I'll keep , for now, AUY, FLO, GES, PDI, RCII, T, BAC, RBCAA, FITB, BKE and GFI

[Stallion]

https://www.brokerage-review.com/account-fee/broker-reorganization-fee.aspx

[theorudy]

https://www.brokerage-review.com/acc...ation-fee.aspx

Reorganization fee at Fidelity = $0. Good to know.

[louisvillekid]

Yeh, I'm definitely gonna have to pay attention to emails associated with all my accounts. And definitely watch out for any notices of mergers, buyouts, and reverse splits.

I have a WeBull, Robinhood, E-Trade and Interactive Brokers trading accounts.

[newton0038]

You owe them nothing. If they zeroed your account, that is on them.

[louisvillekid]

You owe them nothing. If they zeroed your account, that is on them.

Well, they already took it. three separate -$38 charges since Aug 19th. Because i owned 1 or 2 shares of 3 different stocks that "restructured."

From now on I'm just gonna have to stay up to date on my emails and anytime I see anything about any stocks that I own that are about to "restructure" and/or are having a reverse split, and/or are being bought out or merging - i'll make sure to hurry up and dump them.

This is only an issue because of how small of amount of shares of something i own. I own a lot of 1 share of this or that across all my platforms - mainly because it's just a ride and see type thing - to see how this company performs.

Welp, lesson learned.


But actually - even if i owned 50-100, or more - shares of a certain stock, and was hit with a -$38 fee because of a buyout or reverse split or whatever other bs that triggers it - it'd still suck being charged that.