I, like many users of this platform, have had immense trouble dealing with stock splits. TSLA, TQQQ, FNGU, EXPI, … etc. have all been in my portfolio at some time, and during these times they have experienced stock splits. In all cases, the split reflects as NEGATIVE PNL on my account. Not only that, but I am UNABLE to trade shares which are owed to me during the period under which Alpaca is dealing with the corporate action. This can take multiple days or even weeks and always leads to my needing to reach out to support… totally unacceptable. I have never had a problem like this on any other brokerage and it seems to be a problem with your back office. Either figure out a way to allow people to trade the owed shares even before you settle the action or speed up your handling process.
they say it takes a day to “process” i dont see why
Totally agree - and to offload blame to Apex is a cop out. The brokerage is responsible for maintaining an accurate representation of the client’s net assets at any given time. The fact that owed shares are untradeable is borderline illegal.
If this problem is not addressed by support, I have no choice but raise a dispute with FINRA and the SEC.
i dont think that will go anywhere since its due to implementation by policy. its the way the sec wants it, think big like total accumulative debit until n-debit is paid profits are made only by selling first. and that works for hedge funders but not mom and pop
Alpaca Securities LLC is a FINRA registered brokerage. Failure for them to comply with FINRA guidelines could subject them to fines and/or being barred from broker-dealership. I argue that prolonging investors from receiving owed shares and misrepresenting their net assets is a FINRA violation for broker misconduct.
As listed on the FINRA website:
NASD Rule 2110H2 (Under NASD Conduct Rule IM-2310-2, Fair Dealing with Customers): Misuse of Customer’s Funds or Securities
This rule requires firms to observe high standards of commercial honor and just and equitable principles of trade. This means that firms are prohibited from unauthorized use or borrowing of a customer’s funds or securities, forgery, non-disclosure or misstatement of material facts, and manipulations and various deceptions. These activities are also subject to the civil and criminal laws and sanctions of federal and state governments.
I’ve had issues with other stock splits on Alpaca in the past. Currently I’m waiting for them to update my number of shares after the 10 for 1 EDU stock split. They updates the value of the shares but not the quantity, so it shows a huge loss when in reality there is none and I am missing opportunities to sell.