BEFORE you blow up at TSLAG scum...verify WHO actually charged you. I have been hit with this many years ago and it turned out it was actually the BROKERAGE that made the charge.
Check this out
TD Ameritrades response to my complaint about the $20 reorg fee for Juina.
"Thank you for giving me the opportunity to assist you today. Unfortunately, we will not be able to refund the Mandatory Reorganization fee that was recently charged to your account.
Our records indicate that a Mandatory Reorganization fee was assessed on your account in the amount of $20.00 on 10/13/06 as a result of a 1:350 reverse split that was effected on your restricted shares of Juina Mining Corp.
Mandatory Reorganization fees are charged when there is a reverse stock split or a mandatory cash merger. The fee is also charged on some share exchanges where stockholders have no choice in the reorganization as it is mandated by the issuer for all outstanding shares. An example of a mandatory reorganization that would result in a fee to your account would be company mergers or acquisitions.
While these actions are not open market transactions, they will require TD AMERITRADE to re-register the affected stock under a new CUSIP via manual entries on your account. A $20 fee is charged to your account to cover the cost.
The cost of a Mandatory Reorganization incurred by TD AMERITRADE is not related to the value of the security being reorganized. TD AMERITRADE does not have control over the reorganization of a stock that you own.
If the issuing company mandates reorganization, TD AMERITRADE must effect the reorganization for your account.
As a result, in a self-directed account, it is the responsibility of the shareholder to incur costs associated with shares that are owned or take appropriate action to avoid those costs if the shareholder deems them as potentially adverse to their portfolio. Issuing companies are not always obligated to directly inform their shareholders of an upcoming corporate action, so it can be hard to avoid reorganizations like this one.
NASD rules and regulations specify that brokerage firms may charge a reasonable fee for services provided to investors as long as the investors are given at least 30 days notice of the intended fee assessment. The authority to assess these fees is covered under NASD rule 2430.
Sincerely,
Angela C.
Reorganization and Safekeeping, TD AMERITRADE
Division of TD AMERITRADE, Inc."
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