Introducing Kaching
Seamless Reverse Split Arbitrage Execution.
We track the reverse split arbitrage opportunities and provide you with precise info and automated trading—making the strategy hassle-free as passive income.
We track the reverse split arbitrage opportunities and provide you with precise info and automated trading—making the strategy hassle-free as passive income.
How does it work?
- 1What is reverse split arbitrage?Reverse split arbitrage is a strategy to profit from stock reverse splits. In a reverse split, a company reduces its shares, increasing the price per share. If you own a small number of shares, the company may round up your fractional share to one whole share, creating a potential profit opportunity.
- 2Track Reverse splits that round up the fractional share to a whole shareWe develop the algorithms to precisely track the reverse splits that round up the fractional share to a whole share.
- 3Automate the process with Broker ConnectConnect with your brokers through us, once the new profit opportunity comes, we place those trades.
Sounds too good to be true? Learn more >
What do you offer?
Reverse split arbitrage calendar
The up-to-date reverse split arbitrage opportunities
Broker connection
Connect to your brokers to automate the strategy. Currently support Robinhood with its cash or margin account, traditional IRA account, and Roth IRA account. We are expanding to support more brokers in the coming months.
Automation for the passive income
Turn on the automation to make the strategy a truly passive income source for you!
Pricing
Turn reverse split arbitrage a source of passive income for you!
Monthly
$4.99 per month, billed monthly
- Up-to-date reverse split arbitrage calendar
- Connect to the broker of your choice, currently supports Robinhood
- Turn on Automation for the passive income
Subscribe
Yearly
$3.33 per month, $39.99 per year, billed annually
- Up-to-date reverse split arbitrage calendar
- Connect to the broker of your choice, currently supports Robinhood
- Turn on Automation for the passive income
- Best value for more of your profit
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Enterprise
Please get in touch with kaching@ainvest.com
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Frequently Asked Questions
Kaching is an AInvest product focusing on reverse split arbitrage strategy and execution.
We carefully collect and review the upcoming reverse split arbitrage corporate action from SEC website and provide accurate information for you to execute. We also offer trading automation for you on the strategy so you are hassle-free when trading on your own.
We carefully collect and review the upcoming reverse split arbitrage corporate action from SEC website and provide accurate information for you to execute. We also offer trading automation for you on the strategy so you are hassle-free when trading on your own.
Reverse split arbitrage is a trading strategy where you profit from the effects of a reverse stock split if the company decides to round up the fractional share to one whole share.
A reverse split happens when a company reduces its shares, raising the price of each one. For example, in a 10:1 reverse split, for every 10 shares you own, you get 1 share at 10 times the original price.
If you have fewer than 10 shares, the company has options for how to handle the leftover shares. They might:
1. Leave you with a fraction of a share (e.g., 0.1 share), which doesn’t lead to big gains or losses.
2. Give you cash for the fractional share at the new price, again with no major impact.
3. Round up and give you a whole share. For example, if you had 1 share before the split, you could end up with 1 share worth 10 times more. This rounding-up is where the strategy aims to profit.
A reverse split happens when a company reduces its shares, raising the price of each one. For example, in a 10:1 reverse split, for every 10 shares you own, you get 1 share at 10 times the original price.
If you have fewer than 10 shares, the company has options for how to handle the leftover shares. They might:
1. Leave you with a fraction of a share (e.g., 0.1 share), which doesn’t lead to big gains or losses.
2. Give you cash for the fractional share at the new price, again with no major impact.
3. Round up and give you a whole share. For example, if you had 1 share before the split, you could end up with 1 share worth 10 times more. This rounding-up is where the strategy aims to profit.
Kaching by AInvest offers the most accurate and up-to-date reverse split arbitrage information and automation on the trades (with our paid service).
Currently, we only support Robinhood with its cash or margin account, traditional IRA account, and Roth IRA account. We are expanding to support more brokers in the coming months. For each account, you can execute the reverse split arbitrage strategy. So you already have 3 times the profit from the reverse split arbitrage information.
Yes, you can get a 7-day free trial on the annual plan. We do not offer refund after the 7-day free trial.
There are a few risks you need to know:
1-fees on the penny stocks
Some brokers will charge a fee on the trade on those penny stocks ( stocks under $1), and we will carefully curate the brokers that will make it profitable.
2-Company changes the reverse split decision on the execution date
Companies can announce changes or cancel the split on the same day it is supposed to go in effect. So please understand that reverse split arbitrage could result in cash in Lieu or fractional shares, in which case you do not profit.
3-taxes
Please keep in mind that any profit generated in your account from reverse split arbitrage carries income tax responsibilities. The exact tax treatment of these gains can vary based on factors such as your location, holding period, and individual circumstances. We recommend consulting a qualified tax professional or financial advisor to understand how these profits will be taxed and to ensure you remain compliant with all tax laws.
1-fees on the penny stocks
Some brokers will charge a fee on the trade on those penny stocks ( stocks under $1), and we will carefully curate the brokers that will make it profitable.
2-Company changes the reverse split decision on the execution date
Companies can announce changes or cancel the split on the same day it is supposed to go in effect. So please understand that reverse split arbitrage could result in cash in Lieu or fractional shares, in which case you do not profit.
3-taxes
Please keep in mind that any profit generated in your account from reverse split arbitrage carries income tax responsibilities. The exact tax treatment of these gains can vary based on factors such as your location, holding period, and individual circumstances. We recommend consulting a qualified tax professional or financial advisor to understand how these profits will be taxed and to ensure you remain compliant with all tax laws.
Once the reverse split is executed, it might take your broker a few days to reflect the whole share back to your account.
We gather the reverse split information from SEC official website about the company, the company that filed for the reverse split can withdraw their filing without posting to the SEC website, from our statistics, around 10% reverse split arbitrage might not work, but statistically you are still profitable from those events.
certain companies choose to round up fractional shares to whole shares during a reverse stock split for several reasons:
1. Simplification of Shareholder Accounts: Handling fractional shares can be administratively complex and costly. By rounding up to whole shares, companies simplify their shareholder records and reduce administrative burdens associated with managing and processing fractional shares.
2. Enhancing Shareholder Goodwill: Rounding up fractional shares is a goodwill gesture that can improve the company’s relationship with its shareholders. It prevents shareholders from feeling shortchanged due to losing fractional shares, thereby maintaining investor confidence and satisfaction.
3. Avoiding Cash Payments for Fractional Shares: If companies do not round up, they often have to compensate shareholders for fractional shares with cash payments, which can be logistically cumbersome and may result in taxable events for shareholders. Rounding up eliminates the need for these cash transactions.
4. Regulatory Compliance and Listing Requirements: Some stock exchanges have minimum share price requirements. By rounding up, companies help ensure that smaller shareholders maintain a sufficient number of shares to meet any minimum thresholds, aiding in compliance with listing standards.
5. Legal Considerations: Rounding up can reduce the risk of legal disputes or shareholder lawsuits that might arise from perceptions of unfair treatment during the reverse split process.
6. Market Perception and Stability: By minimizing the impact on shareholders, companies can foster a more stable investor base and potentially mitigate negative market reactions to the reverse split.
1. Simplification of Shareholder Accounts: Handling fractional shares can be administratively complex and costly. By rounding up to whole shares, companies simplify their shareholder records and reduce administrative burdens associated with managing and processing fractional shares.
2. Enhancing Shareholder Goodwill: Rounding up fractional shares is a goodwill gesture that can improve the company’s relationship with its shareholders. It prevents shareholders from feeling shortchanged due to losing fractional shares, thereby maintaining investor confidence and satisfaction.
3. Avoiding Cash Payments for Fractional Shares: If companies do not round up, they often have to compensate shareholders for fractional shares with cash payments, which can be logistically cumbersome and may result in taxable events for shareholders. Rounding up eliminates the need for these cash transactions.
4. Regulatory Compliance and Listing Requirements: Some stock exchanges have minimum share price requirements. By rounding up, companies help ensure that smaller shareholders maintain a sufficient number of shares to meet any minimum thresholds, aiding in compliance with listing standards.
5. Legal Considerations: Rounding up can reduce the risk of legal disputes or shareholder lawsuits that might arise from perceptions of unfair treatment during the reverse split process.
6. Market Perception and Stability: By minimizing the impact on shareholders, companies can foster a more stable investor base and potentially mitigate negative market reactions to the reverse split.
Disclaimer: Please refer to Conditions and Terms of Use.
Ainvest Fintech Inc ("Ainvest Tech") provides content and products related to securities, securities education, and market news. This is solely for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, transaction, or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. Ainvest Fintech Inc., through its content, news, premade AI strategies, financial programming, or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon, or risk tolerance.
Ainvest Fintech Inc. is not in the business of transacting securities trades, nor does it direct client trading accounts or give trading advice tailored to any particular client’s situation or investment objectives. Ainvest Fintech Inc. is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Securities Trading is not suitable for all investors.
Ainvest Fintech Inc. is a wholly owned subsidiary of Ainvest Holding Corp.