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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Shane M who wrote (57085)	4/4/2016 9:25:08 AM
From: richardred	Read Replies (1) \| Respond to of 78744

I'm not sure this is a apples to apples comparison, but I have been through this several times. I personally haven't heard anything about refusing shares in the spin off itself? However I'd check with your broker to see if they might offer cash in plaice of small or fractional shares beforehand. If not, the best recourse is to usually wait till the spin off company offers to buy odd lot shares in a tender at the market price with no brokerage fees to yourself. However It may take awhile for this to happen, if it happens at all. IMO the new spinoff themselves would like to get you off the books as their mailing costs might out weigh servicing many shareholders with say under 10 shares. On the other hand if you like the new spinoff, you might decide to spend extra money to make a round lot of 100 shares or more. The parent company of the spin off usually has something posted online or sent through the mailings how to reach a cost basis for shares.