Stock splits and fractional shares?

Question

Two funds in my portfolio (FXI and ILF) recently had forward stock splits.

I have fractional shares in these funds due to DRIP activity. However, only the whole shares split. The fractional shares did not, and I was not reimbursed in cash for the fractional split (as some stock splits do).

So, in essence, my fractional shares in ILF lost 4/5 of their value, and in FXI, they lost 2/3 of their value.

Do I have reason to gripe?

Answer 1

When you discovered that you could own fractional shares, you should have discovered the special rules about them.  The rules are not new.  Fractional shares are bookkeeping trick, CLEARLY.  If that was untrue, why would they exist?  You should have been suspicious.  

Every investment should be accompanied by asking a lot of questions.  If you don't ask lots of questions, you have no justification for complaint.  

Before you settle back into your easy chair, look into the consequences of a reverse split for everything you own.  

That means many-for-1.  Or some number for a lesser number.

Answer 2

if you are uncomfortable owning factional shares sell them and buy one share of one or the other.

Answer 3

yes

Answer 4

I would ask them, WHO has the extra stock equity that you would have had from the split shares... Because somebody has it.

The treating of fractional shares is by state law and corporate bylaws, but it sounds like they should at least provide some vaseline for you.

I never deal in fractional shares, thanks for proving I was right.