What does a reorganization fee that a company charges get applied to?
Recently, one of my holdings underwent a reverse split. I was surprised (but not all that surprised) that there was an additional fee of .00 assessed, labeled as a "reorganization fee". This was assessed by the company whose stock had undergone the split, not the brokerage.
I'm assuming that this fee is to handle all of the paperwork involved in reissuing shares, etc., but there is no indication of this. Where is this money going?
(1)1 Comments
Sorted by latest first Latest Oldest Best
Its a broker fee, not something charged by the reorganizing company. E*Trade charge (see Reorganizations under Other fees), TD Ameritrade charge . As with any other bank fee - shop around. If you know the company is going to do a split, and this fee is of a significant amount for you - move your account to a different broker.
It may be that some portion of the fee is shared by the broker with the shares managing services provider of the reorgonizing company, don't know for sure. But you're charged by your broker.
Note that the fees differ for voluntary and involuntary reorganizations, and also by your stand with the broker - some don't charge their "premier" customers.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.