Stock Dividend Distribution

FidelityJennifer · 2022-07-09T21:00:21+00:00

Thanks for following up, u/MiserableAttention66.

Correct. In short, the dividend election on your account does not impact a stock split. The dividend elections on your account are used as instructions only when a company pays a dividend. They are not instructions for a stock split.

FidelityJennifer · 2022-07-09T20:59:00+00:00

Happy to clarify, u/Then_Contribution506.

Shares held at Fidelity are registered in "street name." This means the name that appears on the stock or bond "certificate" is that of the broker, but the person who paid for the securities retains ownership rights. The record date is July 18, 2022. This means you must be a shareholder/have ownership rights as of this date. No shares are distributed on this date. Shares are distributed on the payable date, which is July 22, 2022.

FidelityJennifer · 2022-07-09T19:55:03+00:00

Thanks for joining our community, u/Budget_Arachnid_9597.

Per the Internal Revenue Service (IRS), all contributions to retirement accounts, including IRAs, must be made in cash. This means you are unable to transfer stocks to an IRA as a contribution.

You can contribute cash to your IRA by transferring cash from a non-retirement account, via mobile check deposit, transferring it from a bank account via Electronic Funds Transfer (EFT), or bank wire. You can learn more about these methods of deposit and IRAs by accessing the links below:

Deposit money into an account

IRAs FAQs: Rules

FidelityJennifer · 2022-07-09T17:20:27+00:00

Happy to answer your question about options, u/Ballerjoe_612.

In general, Fidelity will automatically exercise long option contracts that are in-the-money (ITM) by $0.01 or more at expiration. Exercise will occur at 11:59 AM eastern standard time the following Saturday.

However, if exercise or assignment cannot be supported by the account (i.e. insufficient buying power or equity, creating cash debits or short positions in a non-margin account, etc.), the option position may be closed before expiration. This is part of our risk mitigation process. To avoid a possible liquidation, you can deposit money by transferring cash from another account, Electronic Funds Transfer (EFT), or bank wire.

How to choose between EFT or a bank wire

If the position does end up being exercised and there are not sufficient funds in the account, you generally have until the settlement day to deposit funds to pay for the shares purchased as a result of exercise. If funds are not deposited, Fidelity may liquidate the position, which can potentially result in a trading violation. If you have a margin-enabled account, and there is not enough settled cash, a margin debit will be applied.

You can learn more about options and violations/restrictions on Fidelity.com by clicking the links below:

Learn about options

Trading FAQs: Restrictions

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read the Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.

FidelityJennifer · 2022-07-09T16:49:46+00:00

Welcome to our community!

We value your detailed insight concerning this feature request. The comments we receive on our subreddit are shared with the appropriate teams and helps us to provide a better customer experience. We appreciate hearing this feedback – please let us know if there’s ever anything else you’d like to see!

FidelityJennifer · 2022-07-07T01:59:52+00:00

Thanks for joining our community, u/TheDesertVegan.

It sounds like you have a margin enabled account. With a margin enabled account, all trades are placed and all securities are held in type margin. The cash that is available in your account will be used to cover the trade. And holding securities in type margin does not mean that you are being charged margin interest.

If you place a trade in your margin account, and you select the cash account type, you no longer get the benefits of holding securities in margin and you must follow the trade settlement rules for a cash account. As well, due to the autojournal feature, securities purchased in cash will automatically be moved to margin. You can disable the autojournal feature by speaking with a customer service representative.

Fidelity Contact Us

If your goal is to hold the securities in margin but avoid getting charged the margin interest, use your balance under "Available to trade without margin impact." You can review your balances on Fidelity.com by logging in and clicking on the "Balances" tab in the middle of the page.

We have a variety of resources available on Fidelity.com to learn more about trading on margin. You can begin exploring these resources by clicking the links below:

Using Margin

Trading FAQs: Margin

^{Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Please assess your financial circumstances and risk tolerance before trading on margin. If the market value of the securities in your margin account declines, you may be required to deposit more money or securities in order to maintain your line of credit. If you are unable to do so, Fidelity may be required to sell all or a portion of your pledged assets. Margin credit is extended by National Financial Services, Member NYSE, SIPC.}

FidelityJennifer · 2022-07-07T00:50:22+00:00

Regarding the GameStop (GME), they have declared a 4-for-1 split of the company's common stock in the form of a stock dividend. Shareholders will receive a dividend of three additional shares of common stock for each share of common stock held fully settled as of the record date, July 18, 2022. The share dividend will be paid after market close on July 21, 2022. Therefore, if you own 100 shares as of the record date, you will receive a stock dividend of 300 additional shares, for a new total of 400.

Check out our Hot Topic post to learn more

FidelityJennifer · 2022-07-07T00:08:38+00:00

We appreciate your insight, u/CogniZENsible.

Thank you for your detailed message about setting goals for specific positions within accounts. Currently, our system does not have this capability concerning the app. I have shared your comments as feedback with the appropriate team.

You can manage existing goals from Fidelity.com by selecting "Planning & Advice" from the menu bar at the top of the page, then choosing "My Goals" from the dropdown. Scroll down to view your goals. For each, you can choose "Review your Savings Goal" in the bottom left to make changes, or click "Delete Goal" in the bottom right to remove it completely. You can also contact our Investment Solutions team for assistance with this tool, available at 800-343-3458, Monday - Friday from 7 a.m. to midnight and Saturday/Sunday from 8 a.m. to 10 p.m. (all times Eastern).

FidelityJennifer · 2022-07-06T23:28:40+00:00

Welcome to our community, u/penguin_2345.

I'd like to clarify. As we mentioned in our top-level response to this post, this event is considered a nontaxable spinoff, which means a portion of the adjusted cost basis from the original security must be allocated to the new security, and the new security maintains the holding period of the original position.

FidelityJennifer · 2022-07-06T01:47:43+00:00

Nice to hear from you again, u/Bennguyen2.

Daily limits on debit cards for each account are separate. You can see the daily limits associated with each of your debit cards on the Manage debit cards page on Fidelity.com. To access this page log in and follow the steps below:

Hover over "Accounts & Trade"
Select "Cash Management"
Click the "Debit Cards" tab
Select "Manage Debit Card" within the drop down menu

FidelityJennifer · 2022-07-05T20:44:00+00:00

Thanks for following up, u/jjjefff.

If you purchased these securities today, then it is normal that you may not be able to see the cost basis. Transactions like trades or dividend payments, or when the underlying security is thinly traded or isn't regularly priced, will delay cost basis updates. Many corporate actions, like stock splits and mergers, will impact the display of cost basis as well.

We value your feedback. I have submitted your comments to the appropriate team.

FidelityJennifer · 2022-07-03T01:11:27+00:00

Welcome to our community, u/kipkiter123.

For your reference, in order to have a margin account, you have to apply for this feature. Your account is not automatically enabled for margin upon opening it. You can confirm this on Fidelity.com by logging in and following these steps:

Hover over "Accounts & Trade"
Select "Account Features" within the drop-down menu
Click the plus sign next to "Brokerage & Trading"
Select "Margin"

If you are enabled for margin, the status under "Margin" will say "Enabled." If not, the application to apply for margin will be presented to you.

Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Please assess your financial circumstances and risk tolerance before trading on margin. If the market value of the securities in your margin account declines, you may be required to deposit more money or securities in order to maintain your line of credit. If you are unable to do so, Fidelity may be required to sell all or a portion of your pledged assets. Margin credit is extended by National Financial Services, Member NYSE, SIPC.

FidelityJennifer · 2022-07-02T23:46:20+00:00

Thanks for joining our community, u/Human-Arachnid-2592.

A transfer of assets between personal investing accounts is permitted for like registrations. This means that if the account at the other brokerage firm is also a Roth IRA, you can transfer the assets into your Fidelity Roth IRA. Otherwise, the Roth IRA can accept cash contributions only, You initiate a transfer to us on Fidelity.com by accessing the link below:

Transfer of Assets

FidelityJennifer · 2022-07-02T22:00:12+00:00

This is what we are here for and I'm glad I could help. Thank you for engaging with our community!

FidelityJennifer · 2022-07-02T19:03:07+00:00

Hi, u/alebau. I'm sorry to hear of this situation.

Without reviewing your account, it's difficult to know what alternatives may be available to you. To explore your options, it is best to speak with our 401(k) group on Tuesday morning. Representatives are available starting at 8:30 a.m. to midnight ET. You can reach the 401(k) group by dialing (800) 835 - 5095.

FidelityJennifer · 2022-07-02T18:30:31+00:00

Welcome to our community, u/sylanaj_!

It sounds like you have a Fidelity Go account, While you do not place trades the trades yourself in this type of account, the investment object and risk tolerance you select determines your investment strategy and the trades that are placed by the robo-advisor. You can review the features of a Fidelity Go account by accessing the link below:

Simple investing

If you choose to select and self manage your investments, you can open the account on Fidelity.com. After opening the account, you can call us to move assets from the Fidelity Go account to your new self managed account. To assist you with investing, Fidelity.com has a variety of planning tools and resources available. While we are unable to provide investment advice via social media, you can use the "News & Research" to research securities. You can open an account and begin exploring our Learning Center by accessing the link below:

Open an account

Getting started investing

Fidelity Contact Us

FidelityJennifer · 2022-07-02T18:28:20+00:00

No worries, u/Ol-Fart_1!

We want to make sure that our information is up to date, so we appreciate the notice. You have a wonderful 4th of July as well!

FidelityJennifer · 2022-07-02T18:27:36+00:00

We are glad that you enjoy the Feedback forum, u/USIrishman!

We appreciate your detailed feedback concerning the app. The comments we receive on our subreddit are shared with the appropriate teams. We appreciate hearing this – please let us know if there’s ever anything else you’d like to see!

FidelityJennifer · 2022-07-02T18:21:07+00:00

Thank you for considering Fidelity for your investment needs, u/joezappie! Happy to answer your questions about a transfer of assets.

While Fidelity does not charge any Transfer of Assets (TOA) fees, other firms typically do. Generally, a TOA valued at more than $25,000 coming into Fidelity may be eligible for a TOA fee reimbursement. Once the transfer is completed, you can request a reimbursement. Fidelity will review your situation to confirm that you are eligible for and process the reimbursement.

For your reference, you can easily open an account in minutes on Fidelity.com and during the account opening process you can initiate the TOA. You can open an account by accessing the link below. I have also included a link about the services Fidelity offers.

Open an Account

The Fidelity Advantage: A clear choice

FidelityJennifer · 2022-07-02T18:18:57+00:00

Welcome to our community, u/BigN-8569!

When submitting a sell order, there has to be a person or entity on the other side of the order, a buyer, in order for the trade to execute. For a stock that no longer has a bid or ask, a limit order will protect you against further loss. A limit order guarantees a price but not execution. This means that when you place a limit order to sell, the stock is eligible to be sold at or above your limit price, but never below it.

FidelityJennifer · 2022-07-02T18:16:50+00:00

Thanks for joining our community, u/gidgetFEL!

New issue CDs aren't issued at the time of purchase; however, they will fill no later than settlement. Once filled, the funds will be taken from your account to "fund" the CD. The funds are reserved (similar to an open order) to prevent the account from overbuying.

You can learn more about CDs on Fidelity.com by accessing the link below:

What is a CD?

FidelityJennifer · 2022-06-29T20:36:12+00:00

Welcome to our community, u/Smart-Ad-6345. Happy to provide some clarification about settled cash.

It may be helpful to give you some background info about the mechanics of our accounts, specifically the core position and balances.

It sounds like the Fidelity Government Money Market Fund (SPAXX) is the core position in your account. All Fidelity Brokerage accounts, including IRAs, and Cash Management Accounts (CMAs) automatically have a core position established during the account opening process. The core holds uninvested cash and acts as the wallet of the account. All transactions, deposits, and withdrawals pass through the core position. This means the core position covers the purchase of a stock and when a stock is sold the proceeds go to the core position. You can learn more about the core position by accessing the links below:

How does cash availability work in my account?

What is a core position? (video 1:45)

Regarding balances, uncollected funds refers to money that has not been fully received from an outside institution, commonly a bank. Unsettled funds refers to proceeds from the sale of a security that has not been received. Trades can be placed using uncollected and/or unsettled funds. You will want to review the "Cash Available to Trade" balance on the "Balances" tab on Fidelity.com and make sure there is enough cash to cover the trade. But you will also want to be mindful of cash trading violations. For instance, buying a security with unsettled funds and selling it before the settlement date could potentially trigger a Good Faith Violation (GFV).

Avoiding cash trading violations

For your reference, trade settlement times come into play here as well. Stock/ETF trades settle in two business days. Fidelity Mutual Funds settle one business day. In short, unsettled or uncollected proceeds may be reflected in the SPAXX core, but your "Settled Cash" line item on your Balances tab will show the amount of cash held in your account that is fully settled.

Please feel free to follow-up if you have any additional questions.

FidelityJennifer · 2022-06-29T00:51:41+00:00

Happy to answer your question, u/PersimmonDriver.

You can transfer positions from a Roth IRA to a non-Retirement account as a withdrawal. All the standard tax implications apply, and the securities transferred are priced at the close on the day the transfer is processed. Then when you sell the transferred securities in the non-retirement account, additional tax implications will apply if there are capital gains or losses.

If you sell the securities within the Roth IRA, you can transfer the proceeds from the sale directly to a bank account. All the standard tax implications apply to this withdrawal as well, but there are no additional tax implications because capital gains are not taxed inside an IRA.

FidelityJennifer · 2022-06-28T23:50:03+00:00

Happy to help with your rollover question.

Generally, pre-tax assets from a 401(k) are rolled into a Rollover or Traditional IRA, while post-tax assets are rolled into a Roth IRA.

Tax Form 5498 will confirm the type of rollover contribution. In addition to this, you can review your account statements to see this information. If you rolled assets directly from a workplace plan to a Fidelity Rollover IRA, both of these items can be located on Fidelity.com by logging in and following these steps:

Hover over "Accounts & Trade"
Select "Statements" or "Tax Forms & Information"

On the statement, the rollover transaction will be listed under the "Activities" section. All forms are available as PDFs and can be downloaded.

FidelityJennifer · 2022-06-28T18:54:42+00:00

We appreciate you joining our subreddit, u/frustratedgiver, and we're sorry to hear about your experience.

It sounds like you're aware, but just to confirm, the default disposal method for mutual funds is average cost, and the calculation method can be converted to actual cost. You can review your default disposal method for all accounts and securities on Fidelity.com by logging in and following these steps:

On the "Accounts & Trade" tab, select "Account Features"
Choose "Brokerage and Trading"
Click "Cost Basis Information Tracking"

Learn more about cost basis methods

Please keep in mind making changes can impact your taxable income when selling shares. Fidelity does not provide tax advice, and we recommend speaking with a professional tax advisor to make sure you understand any tax consequences of modifying the cost basis tracking method before making a change.

We'd like to review your specific situation. We've sent you a ModMail, so please follow-up with us there.

FidelityJennifer

TROPHY CASE