Exploiting SEC Filings

TODO: make this longer and more engaging.

Still, I can remember driving home from high school. I was on the phone with customer service hotlines trying to get three brokerage accounts approved at once.

In the end, I would have hundreds of these accounts. Each with just enough balance to keep it open.

I was calling because in the next trading day, Acorda Therapeutics was reverse splitting (bundling shares to make them look more valuable). My opprotunity. Their SEC filing had a clause mentioning that if your shares weren’t divisible by 20, you would recieve an extra share. Effectively rounding up your shares. This had been going on for months. Often, netting a steady $10-100 per event. Acorda Therapeutics was different. For EACH of my hundreds of accounts, I would net $10.

I would make thousands of dollars with no work. The people who were in on it would too. We knew that word would spread… and quick.

Indeed, on June 1, 2023, everybody knew. Evident by the three month dry spell, no company would ever “round” their reverse stock split again.

Now, we pay homage to the companies who fell victim.

May their next good deep go unpunished.