Dear Clients，
General Electric Company (GE) announced that it will carry out the 1-for-8 reverse stock split which will be effective on 2 August 2021. This means every 8 shares of General Electric Company will be combined into 1 share and the stock price is expected to initially increase proportionately on 2 August 2021.
As ATFX offers General Electric Company shares CFD (#GE) price which is derived from the share on the US Exchange, so the CFD shares’ price will also undergo Reverse stock split.
|
Symbol |
Product |
Corporate Action |
Effective Date |
|
#GE |
General Electric Company CFD |
1-for-8 reverse stock split |
2 August 2021 |
The examples below describe how #GE to be proceeded 1-for-8 reverse stock split affects your current holding position.
Sample 1:
|
Stock Split |
Date |
Type |
Volume (Lot) |
Open price |
|
Before reverse Split |
Before 2 August 2021 |
Buy(or Sell) |
80 |
12.65 |
|
After reverse Split |
After 2 August 2021 |
Buy(or Sell) |
10 |
101.20 |
Sample 2:
|
Stock Split |
Date |
Type |
Volume (Lot) |
Open price |
|
Before reverse Split |
Before 2 August 2021 |
Buy(or Sell) |
85 |
12.65 |
|
After reverse Split |
After 2 August 2021 |
Buy(or Sell) |
10 |
101.20 |
Since the remaining 5 shares cannot be combined in proportion, it will be settled by Cash adjustment, the amount will be Credited (if profit order) or Debited (if lost order) to clients trading accounts, the formula as below:
(The 30 July closing price – open price) X 5 shares = Cash adjustment
Note:
- All pending orders Take Profit/Stop loss/Buy Limit/Sell Limit/Buy Stop/Sell Stop will be DELETED after market closed on 30 July 2021.
- In order to ensure the price stability after the stock split and avoid affecting clients’ transactions. #GE will be delayed 5 minutes after market opening on 2 August 2021. That means the trading hours start from 16:38 MT4 system time!!
Please feel free to contact us via email: cs.uk@atfx.com if you have any questions.
Sincerely,
ATFX
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