Why is there extra cash held in my Stock Investing Account?
You may see some cash in your Stock Investing Account for the following reasons:
- Excess funds are left over after a purchase or sale of investments
- You received dividends
- A corporate action on a stock you own resulted in cash that was paid to shareholders
This cash is held in a money market fund, TIMXX.
The next time you schedule an investment, we’ll try to invest this cash up to a certain limit (no more than 1% of your scheduled investment amount, with a max of $50. So if you schedule an investment of $100, we may invest up to $1 of the cash that’s already sitting in your portfolio).
When you request to sell investments, we’ll use this cash first before determining the amount of investments to sell to cover your request.
To transfer this cash back to your Cash Account, just tap Sell and enter the amount of leftover cash.
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