Fidelity makes certain temporary adjustments to accounts due to receive a pending stock distributions. These adjustments are necessary to avoid the appearance of an artificial change in market value between the ex-date, when the price per share drops, and the payable date, when the distributed shares are actually allocated to the account.

The following adjustments are made to the account to keep market values constant during this period (apart from normal market fluctuations):

• Shares pending allocation are posted to the account as non-usable type 5 (Restricted Stock) on the morning of the ex-date.
• Shares are posted as receivable for a long position or as payable for a short position.
• Shares in type 5 are prohibited from being traded or moved to another account type.
• Shares remain in type 5 until the payable date, at which time the type 5 transaction is reversed and the actual distributed shares are allocated to the appropriate account type (1, 2, 3, or 6).

In Wealthscape, view shares pending allocation here:

• Account Positions, Position Details, Client Positions
  Shares are listed as type 5, with an unknown cost basis, and the same price per share as the shares that generated the distribution.
• Account Cartridge, Account Balances, Multiple Margin Summary, Client Cartridge, Client Summary
  Market value of shares is reflected in Total Account Value, Securities Market Value, and derivative balances. Shares do not impact margin buying power or any amounts available to trade or withdraw.
• Account History, Client History
  Type 5 transactions appear as stock distributions pending allocation, with Corporate Actions as the transaction type.

 

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