For those of you who havnt seen it, here is the Scottrade email. It is not a hoax. I own 10000 shares of BAC. the only way anyone would know that would have to have access to my account. Based on the number of people who have recieved this email, it is likely legitimate.
RE: stock symbol BAC
The above listed stock is part of a non-mandatory reorganization or tender offer, which requires your timely attention. For details regarding this offer, contact your local branch office. Please note that failure to advise Scottrade of your intent may result in no action being taken, and we cannot be held responsible for any resulting loss.
If you decide to participate in this offer, you will need to inform your local Scottrade branch office no later than 10 a.m. ET on the expiration date, and a $25 fee will be charged to your account.
These shares must then remain in your account until the reorg/tender takes place (be advised that the expiration due date for such actions is often extended). Please contact us if you have any questions.
It doesnt make sense to me for several reasons.
1. If Scottrade is trying to cover shorts, why not just cover them? To buty my shares they would have to pay a premium.
2. If this was a hoax, the email would ask you to do something else than call the local branch.
3. The only thing that does make sense to me was that a large buyer wants to avoid going through the exchange for some reason, but why? Again whoever it is is going to have to pay a premium for the shares.
Can anyone else think through a logical reason why this is happening?
What ever this is, its not bad for the stock price.
If you've had the shares for over a year and purchased them for $42, then you can always sell 82 something shares of them and take a $3000 deduction on your taxes next time you file. Depending on your tax bracket, it may be worth it.
Listen I am a JPM stockholder and I got the exact same message.
I really like the questions that you brought up in your post and for the life of me I can't figure this out.
All I can say is that it really has caused significant concern for me and I am prepared to move my brokerage account.
This was what happened to me before for an unknow stock.
Got a letter from AmeriTrade regarding the non-mandatory tender offer for a investor(s) who like to buy certain amount of shares with the fiixed price just a little above the market price and with a deadline on it.
So I called the broker before the end date but just partial of my shares were bought cause the investor have enough shares.
The symbol is LTON, a Chinese company.