Can't sell shares after reverse stock split - broker not allowing it!

This is a discussion on Can't sell shares after reverse stock split - broker not allowing it! within the First Steps forums, part of the Reception category; Hi guys, I invested recently in a stock at around 45c a share: VNCE They just finished their 1:10 reverse ...

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Old Oct 24, 2017, 3:45pm   #1
 
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Can't sell shares after reverse stock split - broker not allowing it!

Hi guys, I invested recently in a stock at around 45c a share: VNCE

They just finished their 1:10 reverse stock split today and the share price has shot up to $4.19.

The broker who I invested with have told me they can't sell my shares for a few days as the shares are going through 'consolidation'.
I was hoping to move the shares on because the longer it is left the more danger there is of the price coming down again!

Is this scenario normal?!
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Old Oct 24, 2017, 4:31pm   #2
 
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I was hoping to move the shares on because the longer it is left the more danger there is of the price coming down again!
For every 10 shares you owned before the split, you now own one - so you've not made or lost any money because of the split. You know this right?
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Old Oct 24, 2017, 4:47pm   #3
 
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99point99 started this thread I bought during the Reverse Split 'window'- so I got shares at 45c. The share price now that the Reverse Split has ended is now $4.18. My original $3K investment is now worth $26K.
I can't sell the shares on the app and the broker wont sell them over the phone. They claim the share price is consolidating and wont be available to be sold for a few days.
This sounds like rubbish to me.

Is it right to suspect a broker of fraudulently withholding selling shares so that they don't have to pay out?
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Old Oct 24, 2017, 4:51pm   #4
 
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I bought during the Reverse Split 'window'- so I got shares at 45c. The share price now that the Reverse Split has ended is now $4.18. My original $3K investment is now worth $26K.
Sorry mate - That's not how splits work. As I said, you've won't have made or lost any money because of the split.
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Old Oct 24, 2017, 4:58pm   #5
 
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Did the broker feed you the 'Reverse Split Window' spiel to get you to invest or something?
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Old Oct 24, 2017, 5:11pm   #6
 
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99point99 started this thread No, I picked the stock knowing I would get the shares for $0.45, and according to my trading account have made $22K on top of my original $3K investment due to the share price increasing to $4.18. However the brokers are not allowing the sale of my shares either online or over the phone - which leaves me slightly confused about what to do to be honest. Just wondered if it's normal not to be able to sell shares immediately after a reverse stock split and that the broker are validated in saying that there is a 'consolidation period'. It is a weird situation, I bought in during a reverse stock split a couple years ago and made a huge profit without this hassle, the only thing that has changed is that I am using a different broker this time much to my dismay and that's why I suspect something fishy is going on.
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Old Oct 24, 2017, 5:16pm   #7
 
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Name and shame! who's your broker?

...and congratulations, looks like your on a winner
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Old Oct 24, 2017, 5:21pm   #8
 
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Sorry mate - That's not how splits work. As I said, you've won't have made or lost any money because of the split.
cbrads is 100% correct. There is no magic profit making window. That's just b0llox. Your P/L may show £26k but again as your broker states, would be during consolidation. You couldn't sell the shares and take that money. Although great if you could, right?

With respect to you 'doing this before and making a huge profit' that would have been (if true), due to other factors. Your stock value will always remain the same whether it's a stock split or stock merger.

Lee
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