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How are existing positions affected by a stock split?

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Written by Pascale
Updated over 5 months ago

When a stock split occurs, the number of outstanding shares increases, while their individual value decreases proportionally.

For example, in a 1-for-4 split, each share will be worth one-fourth of its pre-split price, while the total number of shares quadruples.

Trading timings after a stock split:

  • A stock split may cause a price gap at market opening and increased volatility.

  • To protect traders from stop-outs due to unpredictable conditions, trading will resume 15 minutes after the session opens.

  • If abnormal market conditions persist, this delay may be extended.

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