Questions tagged [stock-split]

For questions related to the various forms of stock splits, reverse stock splits (share consolidations), etc.

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Why do stock exchanges have minimum share price requirements?

Most stock exchanges have rules about minimum share prices, below which a stock may be suspended or delisted from the exchange after a grace period. For example, the New York Stock Exchange requires a ...
Flux's user avatar
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31 votes
2 answers
20k views

Is my stock gone forever from a reverse split / bought by another company?

I'm a complete novice in regards to investing and had purchased some shares of OXIS from TD Ameritrade back in March of 2015 (NASDAQ). The company (OXIS International) became very devalued and did a "...
Joe's user avatar
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24 votes
2 answers
5k views

What happens to my shares if a company reverse splits its stock 10 to 1, but I own fewer than 10 shares? [duplicate]

Company A decides to do a reverse stock split and reduces the number of shares by, say 10 to 1. Before the reverse split I only owned 7 Stocks on that company. How will this reverse stock split ...
greenrabbit's user avatar
21 votes
4 answers
5k views

Can companies use reverse stock splits to liquidate my shares at unfavourable prices?

Suppose a stock is currently selling at $0.50, which I think is a severe undervaluation. Suppose I own 700 shares of this stock, and I don't intend to sell at the current price because of the severe ...
Flux's user avatar
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17 votes
2 answers
39k views

How does Yahoo finance adjust stock data for splits and dividends?

When a data provider like Yahoo finance says that the closing price is adjusted for splits and dividends, what does that mean? A split will increase/ decrease the price by the split ratio, and a ...
Victor123's user avatar
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16 votes
1 answer
6k views

What is a stock split (reverse split)?

In the picture below, Citigroup's stock split 1 to 10. My guess is this means that everyone who had 1 share now has 10 shares? This can't be right though, because the value of the stock after the ...
Kirk Ouimet's user avatar
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14 votes
2 answers
4k views

Stock Split seems not to have changed the Share Price. Why?

I was recently looking at the financial charts of TCS(Tata Consultancy Services) and noticed that the TCS offered 1:1 bonus on 31st May, 2018. I noticed that the price of the share stock did not ...
Mohit's user avatar
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13 votes
4 answers
26k views

When am I entitled to participate in a stock split? — record date, split date, ex date

Stock split announcements usually mention a few dates — record date ("date of record"), split date ("distribution date", "pay date", or "payment date"), ex date ...
Flux's user avatar
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9 votes
2 answers
7k views

Is there any reason to buy shares before/after a split?

I understand the basics of stock splits. My question is, all else being equal is there any benefit to buying shares prior to versus subsequent to a split? As a hypothetical, imagine Apple's price ...
JP.'s user avatar
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9 votes
5 answers
6k views

Why is a stock dividend considered a dividend? What makes it different from a stock split?

I've been reading Principles of Corporate Finance by Brealey, Myers and Allen, but unfortunately they did not cover stock dividends. From what I understand, by paying a dividend, a company can ...
Martijn's user avatar
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8 votes
2 answers
12k views

What happens to options held during a reverse stock split?

I held 1 put option for 100 shares of USO that expires on May 8. Yesterday, USO underwent an 8:1 reverse stock split. My options are now for USO1 instead of USO, but what does that mean? The strike ...
Ian's user avatar
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7 votes
2 answers
1k views

Mechanics of forward stock split

Apple (AAPL) recently announced that they'll undergo a 4:1 stock split. Here are the relevant dates per a CNBC article: The shares will be distributed to shareholders at the close of business on ...
Adam Freymiller's user avatar
7 votes
1 answer
700 views

SEC filings: Apple number of shares

I'm experiencing some trouble in understanding the evolution of the Apple number of shares. In particular, I am looking at its 10-Qs of 27 June 2020 and 26 December 2020. Here, I read that there were ...
John Giorgio's user avatar
7 votes
2 answers
21k views

In a reverse split, what happens to odd lots?

Let us say for example that I have 27 shares of stock X (there really is an X but its identity is not relevant). In this example, X does a 5:1 reverse split. How many shares do I end up with. If I ...
Joshua's user avatar
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6 votes
2 answers
3k views

How does stock split work in practice with short sellers?

Using Tesla as an example who announced a coming 5-1 stock split yesterday According to the press release, people that own Tesla stocks on or before Aug 21st will receive an additional 4 shares as ...
Bøbby Leung's user avatar
6 votes
3 answers
3k views

Why and why would/wouldn't a company split their stock?

When Apple was in the high $600 or so range, it split 7-for-1 and made it more affordable to purchase more shares for less, even though the value was technically the same. I see companies like Google ...
CuriousFellow's user avatar
6 votes
3 answers
842 views

Why have I never seen a stock split?

I know it happens, but I've never seen it once. I'm a total stock amateur; I just invest small-scale amounts that I have to spare for the sake of experience/practice and a maybe a little fun. But ...
temporary_user_name's user avatar
6 votes
4 answers
6k views

Does a stock holder profit from a reverse-stock split?

I noticed today, that a couple of the top gainers in the NYSE and the NASDAQ had reverse stock splits yesterday. SGY and DZSI show gains of ~300% and ~400% respectively. Each is associated with a 5 ...
grldsndrs's user avatar
  • 465
6 votes
3 answers
3k views

Does it make sense to trade my GOOGL shares for GOOG and pocket the difference?

I owned some GOOG shares at the split so now I have GOOG and GOOGL. Does it make sense to sell all my GOOGL shares, and buy GOOG shares and pocket the difference; presuming that the difference is ...
darrickc's user avatar
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5 votes
3 answers
707 views

Investing / Options idiot - how can I get out of this position?

Long story short, I'm stuck about what to do with puts on an ETF I bought last Friday. I had a feeling a certain gold mining ETF would dip this week so I took a gamble and bought 175 puts at the ...
wisdomcube's user avatar
4 votes
1 answer
5k views

When do companies typically announce stock splits?

I was curious if a company typically announces stock splits during quarterly earnings releases. I'm particularly curious about Apple, but in general wonder if there is a common practice for this.
Ray K's user avatar
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3 votes
1 answer
1k views

Can reverse stock splits create fractional shares with infinitely repeating decimals?

Suppose I own 1 share of company A. Company A then decides to undergo a 1 for 3 reverse stock split. After the reverse split, I will own 1/3 shares (i.e. 0.333333... shares). The number of shares I ...
Flux's user avatar
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3 votes
2 answers
386 views

How do reverse stock splits affect my holding period for tax purposes?

Suppose I buy one share of stock in AAPL. 6 months later I buy another share. 6 months later AAPL does a 2:1 reverse split and I sell the resulting share. Would I pay short term or long term ...
yeons's user avatar
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3 votes
2 answers
822 views

What happens to options after a stock split?

If an underlying stock splits, are the options just adjusted accordingly (i.e. quantity I own is multiplied, and strike price is divided)? For example, AAPL will have a 7 for 1 split soon. If I have ...
Jer's user avatar
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3 votes
1 answer
559 views

Accounting for splits in a stock price graph

Many companies will have splits of their stock (either forward or reverse). However, when looking at the before and after prices, a raw analysis of the graph would look like the stock lost half its ...
warren's user avatar
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2 votes
3 answers
4k views

Why don't companies, whose share price plunged, reverse stock split to boost it?

COVID-19 has caused many large-caps' stocks to tumble like Spirit, Husky Energy ($2.75). Why don't they reverse stock split to uplift their share prices? Here are some benefits of unsplitting: A high ...
user avatar
2 votes
4 answers
3k views

What is the difference between a scrip dividend and a stock split?

Definitions of both scrip dividend and share split gives the same meaning. What is the difference between a scrip dividend and share splits?
Dharshana Jayasekera's user avatar
2 votes
2 answers
116 views

Do knock-out call options become worthless when the underlying stock is split?

Suppose you own KO call options based on a stock. The knock-out level would be at $90, the stock currently is at $100. But then the stock is split 1:2, so suddenly the stock is worth $50. Do the ...
SME_Dev's user avatar
  • 121
2 votes
1 answer
6k views

How to calculate new price for reverse split?

I have the following position ABC 500 shares @ $120.00 ABC is trading at $15.00. $60000 - $7500 = -$52500 ABC did a reverse split 1:5. An 80% decrease in shares. After the split, it is trading ...
4thSpace's user avatar
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2 votes
2 answers
452 views

What exactly changes following a stock split? Why doesn't "Shares" (on the following SEC balance sheet) change?

What exactly changes following a stock split? Why doesn't "Shares" (on SEC balance sheet) change? This morning, BIS split. The share price went from 10.53 to 52.3 but the number of shares listed ...
stuart's user avatar
  • 165
2 votes
2 answers
2k views

How splits and dividends affect option prices

When a stock goes through a split or offers a dividend, do the option prices automatically change? If yes, how? A 2 for 1 split will automatically halve the option price? A dividend of 1$ will ...
Victor123's user avatar
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2 votes
1 answer
4k views

Determining cost basis in a SPAC unit split into stock and warrants

I bought 400 shares of IPOB.U at $11.84/unit. Each unit can be split into 1 share + 1/3 warrant when the holder desires (after the stock and warrants start trading freely, but not before.) I called my ...
spac splitter's user avatar
2 votes
5 answers
1k views

Is there any difference between a 2 for 1 stock split and a 100% stock dividend?

A 2:1 stock split, and a 100% stock dividend seem to have the same effect. Is this really the case, even behind the scenes? Is a 2:1 stock split just a synonym of a 100% stock dividend, or are there ...
Flux's user avatar
  • 17k
2 votes
1 answer
277 views

Fractional share left after a reverse split

I have a short position. It reverse split and now I’m left with a fractional share. How do I buy to cover on E*Trade when it won’t accept the .5 share along with the others? Why wouldn’t they round ...
Bub's user avatar
  • 21
2 votes
0 answers
139 views

Can a stock split after its face value reaches ₹1?

Can a stock split after its face value reaches ₹1? Will the face value be less than 1?I am speaking in terms of the Indian stock market. Yes face value means par value.
user566574's user avatar
1 vote
1 answer
427 views

I am inheriting 1,000,000 shares of Oklahoma Energy Corp stock ; is it worthless OKOK stock or hopefully ONEOK or OGE stock ? Is OKOK 100% worthless?

Am inheriting 1,000,000 shares of Oklahoma Energy Corp Company Stock ; is this likely worthless OKOK stock - or - valuable publicly traded ONEOK or OGE stocks ?
Robert Baumstein's user avatar
1 vote
4 answers
538 views

Which stock has split more than once in the past five years?

For testing reasons I am looking for a stock that has been split more than once in the past five years.
brt's user avatar
  • 1,256
1 vote
1 answer
758 views

Do stock splits make one's shares double in voting power?

From Suits S04E04: You do that, it triggers a stock split. His shares double in voting power. Yours don't. I never really got that. Ostensibly, if you own 20% of the stock just before the split, you ...
BCLC's user avatar
  • 125
1 vote
2 answers
365 views

Why has Games Workshop Group not split their stock? [duplicate]

After a long period of relative malaise, the Games Workshop miniature wargaming company seems to have attained enormous heights of financial success starting around 2017. After spending a while ...
Drubbels's user avatar
  • 151
1 vote
1 answer
974 views

Apple stock split posting in yahoo finance

Will the AAPL stock split automatically show up in my yahoo finance portfolio, or will I have to do it manually?
Fred's user avatar
  • 11
1 vote
1 answer
61 views

How HLT's 2017-01-04 stock split ratio is calculated?

I am trying to understand a discrepancy among a few stock split data sources. One such example is HLT's split on 2017-01-04 (see https://ir.hilton.com/spin-off-information). On this date, HLT spun off ...
Azmisov's user avatar
  • 113
1 vote
2 answers
2k views

Do stop orders get triggered by stock splits?

Situation 1: Suppose I have a stop-loss order in place, and the company's shares split 2 for 1. As a result of the split, the company's share price will halve. Will the stop-loss order be triggered? ...
Flux's user avatar
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1 vote
1 answer
3k views

How much is my position worth after 5-1 stock split?

How much should my position be after a 5-1 stock split. For ever 5 shares, I get 1 share. My position before split: 500 shares of ABC with average price of $25. ABC is trading at $9. My position ...
4thSpace's user avatar
  • 1,408
1 vote
1 answer
5k views

When a publicly traded company splits into two how are common shares fairly valued, distributed?

I recently read that Alcoa, a publicly traded company (AA), will soon split into two publicly traded companies. While merging two companies makes sense to me, splitting does not. Merging companies ...
Michael Prescott's user avatar
1 vote
2 answers
181 views

Stock splits and futures/options contracts

Let's say a company's stock is going to get split into two. All derivative contracts, such as options and futures, will be adjusted accordingly, of course. When are the futures and options contracts ...
Anonymous's user avatar
1 vote
2 answers
2k views

What is the cost basis of fractional shares closed during stock-split from multiple lots?

I bought shares in XYZ three different times: 2017: +100 2018: +150 2019: +160 At this point, I have a total of 410 shares. In 2020, the stock split with a ratio of 971 to 1000, which is a ...
Laith's user avatar
  • 157
1 vote
1 answer
255 views

Is it possible to calculate share price previous to stock split based on adjusted close price?

The price of NSE:HDFCBANK was around Rs. 2K+ before it split on 19-Sep-2019. I am using AlphaVantage to get stock price for NSE:HDFCBANK. It does not show the stock price before stock split as Rs. 2K+....
Naveen's user avatar
  • 165
1 vote
1 answer
1k views

Difference between 'split and redemption' of shares and dividend

I own some NetEnt AB shares. The company is listed at Nasdaq Stockholm Stock Exchange and currently one share is worth ~70 SEK. Today I received a notification from the bank that NetEnt AB has decided ...
kukis's user avatar
  • 135
1 vote
1 answer
182 views

Does an industry 'standard' have any affect on when a stock might split?

I've been following Tesla for a bit and as of today it is at about 120 dollars a share. This isn't exceedingly high in general for the stock market. But it IS high for its industry. Ford is at about ...
Reafexus's user avatar
  • 121
1 vote
0 answers
1k views

How does Ameritrade determine the amount of a reorganization fee for a reverse stock split (BIOC) & how does the fee affect income taxes?

How does Ameritrade determine the amount of the Mandatory Reorganization Fee for a reverse stock split by BIOC? I read a previous comment where the stockholder was charged $20 by Ameritrade several ...
undefined TEXASCITIZEN's user avatar