I bought QBTX on 9/21 at $6.59. It did a reverse 4-1 split on 9/22, and now the stock price is $26.36. I sold it at $26.36, and now my paper trading account is $4,205 richer. Is this an oversight? Will this happen with live account?
@boonsunsong Paper accounts do a good job at simulating live account activity, however there are a few differences. One is that paper accounts do not handle corporate actions such as stock splits or dividends.
In live trading, a reverse split would 1) remove the shares held before the split and 2) credit the account with new shares after the split. These actions are currently not handled in paper accounts. They are, however, handled correctly in life accounts.