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What happens to fractional shares generated for corporate actions?

After a stock split happens, there may be shares that are equal to less than their full value left over in customers’ accounts. These fractional shares resulting from a corporate action are usually dealt in one of three ways. 

1) Cash-in-Lieu: the value of the fractional share will be paid out as cash into the customer’s account. These payments will normally show up in your account within two to three weeks. 

2) It will be rounded up into a full share. 

3) It will be rounded down into nothing. 

Example: You own 100 shares of WEB stock, and WEB has a 1:6 reverse stock split. You will technically now own 16.6 shares of WEB. As we don’t support fractional shares, the fractional share could be paid as one of the above-mentioned outcomes, depending on what the company decides to allocate.

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