I had purchased 1,000 shares of AGNC early in 2012; the purchase was made in two consecutive blocks of 700 and 300. Through dividends reinvestment I purchase two more blocks of shares, 3 months apart, 40.57307 and 35.20234.
I decided to sell the 2 'DRIP' blocks and when I completed the transaction a note informed me that "the fractional shares" would be sold on a FIFO basis.
I looked back into my account to find 4 blocks of stock!: 699.22459, 300, 0.57307 and 0.20234.
They didn't sell the fractional shares, the took the sum total of the fractional shares, deducted them from a whole share, thus creating another block with a fractional share! They claim that fractional shares are sold on a FIFO basis. OK, fine, but they didn't sell the fractional shares, they sold the equivalent of the fractional shares from a whole share.
I opened a support request on this and was told this is how they sell fractional shares. I asked to escalate this and was told it was not possible. I told the rep I was going to close my account for this and list her name and refusal to escalate this for correction as one of the reasons for the closure.
Next, I get a call from an eTrade rep who wants to discuss my earlier phone call; she asks for my account info and SSN!!! Really, I'm supposed to provide personal, secure account info over the phone to someone who called me?!!! I told her I'd have to call her before providing any such information.
Consolidating my accounts into Schwab where when they tell you "the fractional share" are going to be sold, the sell "THE" fractional shares and not the equivalent of the fractional shares on a FIFO basis.
More Review Details
- Review category
- Financial Services