How do fractional shares work at Apex if I'm doing an ACAT (transferring shares without cashing out)?
Fractional shares cannot be transferred out of Apex without first being liquidated (sold for cash). If you transfer your OpenInvest account to another custodian, the whole shares will be transferred over without any sales whereas the fractional shares will be sold for cash and this cash will appear as a balance in your custodian account. You may owe taxes on the investment gains resulting from the sale of fractional shares. If a tax form is generated, Apex will either mail the tax documents or email you an alert to retrieve the documents online depending on your delivery method. To retrieve the documents online, you must create a login with Apex: Apex Online Account.