Categorized | Stock Trading Tips

Reverse Splits & Corporate Actions (RGSE)

Reverse Splits & Corporate Actions (RGSE)

We have recently received notification that there will be a Reverse Split with the stock Real Good Solar Inc. (RGSE). The company underwent a 1 for 30 reverse split on the 26 of January 2017. If you have a number of shares in the company your funds could take up to 2-4 weeks to process a payment. See more from Robinhood below:

Reverse Stock Split

A reverse stock split is a corporate action in which the total number of outstanding shares for a stock or ETF is reduced. Reverse stock splits typically occur when the price of a stock or ETF trades below major exchange requirements.

Since only the number of outstanding shares is being changed, the stock split should not change the company’s overall valuation; the price per share should increase proportionally with the reduction of shares.

Reverse Splits & Your Robinhood Account

If you own a number of shares in a stock or ETF undergoing a reverse stock split that is not evenly divisible by the terms of the stock split, you will typically receive cash in lieu of any fractional shares caused by the stock split.

Any cash in lieu of shares due to you for a reverse stock split will be paid to your Robinhood account at a later date to be determined by the DTCC. Please note that this can take several weeks, though we will process them as soon as the funds are available.

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