Stock Split Strategy [Fractional Shares]

Hey everyone. So just read that fractional shares are not eligible for stock splits (upcoming ones for Tesla and Apple) which is obviously quite disappointing. Apple I care less about as I have some full shares but I also have 0.45 in fractional shares. With Tesla, I’ve never been able to afford or justify the full price in my portfolio so it’s fully fractional.

We will be given cash in our account and our positions will be closed (I assume at market open?) and we can rebuy. My only concern is the possible volatility at the start of trading. Obviously, if you’re a long-term investor, you don’t care that much about specific entry points, but I am conscious that Tesla is particular is extremely volatile and it’d be a shame for me to have to pay a “premium” price to re-own the shares I have. For Apple, I’ll probably try to move some of my capital around to make the share whole at good price points, but I can’t see myself doing the same for Tesla.

What’s everyone’s plan to make the most of this situation or mitigate any possible losses (might also be gains tbf)?

For a fractional share I don’t think anyone should prepare a battle plan weeks before this event. The 5-10$ difference between the best strategy and the worst does not worth the sleep you loose or stress about it.

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Fair enough. I’ve only bought at market open once and it took 15 minutes to go through. But I think you’re right and I’m just overthinking. The type of stock I bought was a hype stock for fun whereas I plan on holding these for much longer.

Ive got the same thing going. Got a whole share of Apple so no worries therem, but i had tesla fractional shares too. I decided id sell them in profit, ive done that. Just waiting for the split to re-buy in long term. Obv with the money i had invested before in tesla, + the profit i got from the investment + a deposit for the start of the new month (sep)

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My plan is to probably forget that this is happening, see that my fraction of apple is missing, grumble, drink coffee, then buy the missing fraction

I’d like to know the exact timings and mechanics before I decide my strategy/plan.

The stock split apparently will take place after trading on 28th August so I was wondering if the fractional shares would be sold minutes before end of trading that day? If T212 aren’t allowing fractional shares to carry through after the stock split, then surely it makes sense for them to auto-sell on our behalf just before the split happens?

Closing our positions when the market opens on 31st August and the stock has already split would seem to the hassle they are looking to avoid with fractional shares.

Hopefully my thoughts make sense!

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It is probably over-thinking this, but if you really wanted to hedge against abrupt price changes at the split you could do this.

Suppose you have 0.5 TSLA, say. Then sell that on day before split and simultaneously buy 0.5 in CFD account. Presumably fractions in CFD get multiplied up without any problem. After 5 for 1 split you have 2.5 in CFD which can be sold and then 2.5 purchased in Invest.

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I don’t do CFDs unfortunately. Maybe one day not soon enough for the stock split.

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