Are there any retail brokers that allow you to sell stock you own the day of a stock split? Is margin a factor?
selling the day of a reverse split
- Thread starter antiseptic
- Start date
Robert Morse
Sponsor
Why would you not be able to sell your stock? The margin should not change,
I don't know either. My broker won't let me sell. I forget the excuse. Something about the split transactions settling. That's not the exact words, but that's a rough "translation."
Robert Morse
Sponsor
Well, that is something different. The corporate action needs to hit your account before you can sell it. Or, you would have to sell the other stock short. This is not your broker fault. It is the process. Why do you have to sell that one day?
Some brokers would put a dummy position in your account to let you sell. That way when the split position goes through the re-org process it will cancel out the short created by the dummy position. I find that after a stock split many stocks just trend lower day after day. You eventually get tired of watching other people sell, as you are stuck holding until you get the worst price a few days later. Some brokers won't let you, but they are the ones that will eventually over-regulate themselves out of business. A customer should be able to sell a stock they own on any day they want. I suggest you call around and find a broker that will accommodate your needs.
hmm... I can't be the only person who notices that stocks have a one day uptrend the day of the split. Usually it's followed by a selloff. I can only guess that it's caused by a liquidity crunch because retail can't sell.