Reverse Split Arbitrage
The Only Real Way To Invest $1
Investing for all — notifications of small, low risk arbitrage opportunities involving reverse stock splits
Small, consistent opportunities
- 3–6 trades per month
- $3–$8 profits per trade
- Average investment just $0.40
- Links to brokers that offer free stock on signup — start investing with literally nothing
- The trade works on 15 brokers
- Learn which brokers can do the trade (and which can’t)
|Month||Net Profit||Number of Brokers||Stocks|
|July 2021||$175.90||16||NTEC, KAVL, SSOK, BLPG|
|June 2021||$200.19||16||EOSS, STAF, IDTY, SBEV|
|May 2021||$46.91||16||ONTX, SMPR, DTRC, GRMM|
|April 2021||$664.66||16||GCEH, SING, TSNP, NSPR, AKER/MYMD, BRNW|
|March 2021||$423.03||17||SXTC, TCCS, AMPG, TSNP, TGC, GHSI, FTGI, FHRV, CONC, GCGX, SAML, GCEH|
|February 2021||$161.48||16||MBRX, NVOS, FLCX, ASDN, TTCS, VKIN, SXTC, AMPG, SAFO|
|January 2021||$72.85||13||AMRH, ACOR|
|December 2020||$25.11||3||WPG, HEXO, AYTU, VIVE|
Disclaimer: Historical performance statistics shown here and on other parts of this website do not represent actual trading results and are meant for informational purposes only. There is no guarantee that opportunities published on Reverse Split Arbitrage will deliver similar results.
How To Trade Reverse Splits...
What is a reverse split?
Say a company needs to increase share price, often to stay listed on an exchange. To do this, they announce that 10 shares will now be consolidated into 1 share, which has the effect of increasing the price per share about 10x. (The exact ratio may differ.) So if you had 10 shares before the split, you’d now have 1 share that’s worth ten times as much. That’s a reverse split.
How do I profit off a reverse split?
But what if you only had 1 share to begin with? Now you’d have 1/10 of a share, a fraction which historically could not be traded. To get around fractional shares, companies will sometimes pay you the cash value of the fractional share. Other times, though, they will round you up to one full share. When they round up, the share you had bought for $0.50 is now worth around $5. You profit $4.50 with almost no risk.
Does it scale?
With a single broker, no. Profit is capped and buying more shares just reduces returns. But single shares can be purchased and rounded up across multiple brokers, increasing your profits. Curious if your broker does round ups? Want to sign up with new brokers to multiply gains while getting free stock as a sign up bonus? See the list of participating brokers.
These opportunities are public but hard to find. Some are announced only hours before the split occurs. I have custom web crawlers scanning corporate action databases every 15 minutes, on top of monitoring 2 alert services, 5 corporate action calendars, and 4 wire services. I cross-check these against SEC filings to ensure management will round up and not pay cash.
What if I don't have $1 to start?
Use my referral codes! 14 brokers will round up reverse splits, and 4 will give you free stocks with no initial investment just for signing up. Sell those and start trading reverse splits without putting up a single cent of your own money.