When doing an in-kind transfer of a position between two brokerages, how are lots with partial shares (from dividend reinvestment) handled? For example, if I owned 513.7696 shares of XYZ that were split across 5 lots as follows:
Lot Shares
1 500.0000
2 2.8965
3 3.1879
4 4.5525
5 3.1327
will I:
A) have 513 shares transferred and the cash for the remaining .7696 share?
or
B) have 512 shares transferred and the cash for the remaining 1.7696 shares?
If the answer is B, is there a way to reacquire most of the partial shares without any tax implications?
I asked my current brokerage, but all they said was that they do not transfer partial shares.
