Here’s a real example of a recent reverse split (with a little bonus provision):
The Board of Directors and Majority Shareholders approved the Reverse Split. At the time of the Reverse Split, holders of outstanding shares of Common Stock will receive one share of post Reverse Split Common Stock for each seventy five shares of pre-Reverse Split Common Stock held. No fractional shares of Common Stock will be issued in connection with the Reverse Split. All fractional share amounts resulting from the Reverse Split will be rounded up to the next whole new share. In connection with the Reverse Split, the Company’s Board of Directors, in its sole discretion, may provide special treatment to shareholders to preserve round lot holders (i.e., holders owning at least 100 shares) after the Reverse Split.
So this split was a 75-1 with a potential “preserve round lot holders” exemption. Meaning if you had 100 shares exactly you would still have 100 shares afterwards.
I know some brokers charge a fee for processing splits. Some will automatically cash out fractional shares regardless of the SEC filing. Some process fast and some process slow as molasses.
So how does Alpaca handle these? What’s the average processing time?