How split affects tokenised shares on the platform?

A stock split is an increase in the number of shares outstanding while reducing the value of each individual share. The total value of all shares remains unchanged. For example, if you have 1 share worth $100, after a 2-for-1 split, you will have 2 shares worth $50 each, and their total value will still be $100, just as before the split.

A reverse split is a reduction in the number of shares while simultaneously increasing their price. The total value of all shares also remains unchanged. Thus, if you have 2 shares worth $50 each, after a 1-for-2 reverse split, you will have 1 share worth $100, and the total value of your shares will still be $100, just as before the split.

With any type of split, you cannot end up with the same number of shares as before it was conducted because this corporate action applies to all shares outstanding.

Tokenised shares are subject to corporate actions in the same way as actual shares. Our cryptoplatform implements the following ways to execute the split:

  • by selling tokens and closing Leverage operations by the customers themselves, or by automatic selling of tokens and closing of Leverage operations at the last available market price before the split, including pre-setting the market to "Close-only" mode, implying that only selling or completing of Leverage operations with that certain tokenised share is possible;
  • by automatic adjusting of tokens and leverage operations on the Client's account, no further action on the part of the Client is required.
  • take other measures (actions) necessary for the reflection (implementation) of the result of the corporate action on the Platform. 

Dzengi.com determines the method of displaying the results of corporate actions on its own decision.

 
 
Was this article helpful?
1 out of 2 found this helpful
Have more questions? Submit a request