Again, in the event of a stock delisting - the system does the following:
It frees up the capital you had initially invested in the position back to your account - which is not visible as a transaction but is obvious in your Account Value/ Free Funds.
The system then adds the Profit/Loss that you have accumulated as a transaction on those shares.
Because of the merger, the position should’ve been closed at the price of 0,(having in mind that the cash equivalent of 2.3348 RTX shares for each RTN share has already been paid out as a dividend), but instead, the system added the initially invested capital once more to your account, which you see as a positive transaction. Meaning, that now you have double your initial investment in your account , plus the cash compensation of 2.3348 RTX per share (each RTX share = 61.50$).
To clear this out, the system then subtracted the double initially invested capital that does not belong in the clients’ fund anymore and left the rightfully given cash equivalent on their position.
In the end, in your account is what it is supposed to be. We are really sorry for the caused confusion and all the back and forth transactions, so we ask you to excuse us once more and keep helping us build this healthy community and platform, to be the best that they can be.
Thanks for the explanation, except you have taken out twice the amount deposited in my case, so I am left net negative balance. I had the dividened amount which pays me for my shares. The extra deposited amount which is for 1x value shares . But by taking twice the (2 x value of shares) amount I am left without money for my original shares. Does that make sense ? Also the dividend amount was less than dividend amount so by taking twice the deposit amount you have taken the value of shares and then some.
I agree with the fact that money should have been taken but it should have been 1xdeposited amount not 2xdeposited amount. So I am due 1xdeposited amount.
You have invested the sum “X” in the trade. You receive compensation “Y”, in place of your trade as cash ( in our system looking like a dividend). This means that your trade should be zeroed out and the end result of your account should look like this(will use AF, standing for Account Funds):
AF - X + Y
What happened due to an error was this:
Account funds + X + X + Y
What we did to fix it was this:
((Account funds + X + X) -(2 * X)) + Y
The reason for you having a negative result from the trade (Y < X), in the end, is because the stock price went down since you opened the trade, so when they did the merger - it’s value was lesser than at the time of your investment. The corporate event did not avoid, nor negate the market risk of your investment.
Hi Peter thank you for your lesson in algebra except for the fact that I only got X + Y but 2X was subtracted. So in algebra terms:
I start with AF + Raytheon shares (I have already paid for these X amount before April).
then I get : AF + X + Y
but withdrawal AF - 2X
leaves me with AF + Y -X so I am due X (I already paid X when I bought these shares) to make my account
AF + Y
I hope this helps.
Whare Y is the dividend for the shares that have disappeared and X is the deposit.
I don’t want to meddle, but my understanding is that problem in system caused to free your invested sum, then add once again the same invested sum plus the cash payout.
Thus you got 2x invested and y which is value on merger, so they did 2x + y - 2x = y
But reality is your intial position should be closed for 0.
Meaning x=0
while Y should be total compensation of post merger.
except for the fact that I only got X + Y but 2X was subtracted. So in algebra terms: