What is a Stock Split?
A stock split is when a company increases the number of its shares by a set ratio without changing the overall market value. This lowers the price per share, making it more affordable for investors.
Example (5-for-1 split):
- You own 100 shares at $200 each → Total value = $20,000
- After the split: 500 shares at $40 each → Total value still $20,000
The investment value remains the same, but each share becomes cheaper.
What is a Reverse Stock Split?
A reverse stock split reduces the number of shares you own while increasing the price per share proportionally.
Example (1-for-10 reverse split:
- You own 100 shares → Receive 10 shares
- Share price increases 10×, keeping your total investment unchanged.
How Does This Affect My Syfe Brokerage Holdings?
Your holdings are automatically updated in your Syfe account after the effective date, and these updates will be reflected in your monthly statement. During the adjustment period, trading for the affected stock may be temporarily paused. Once the effective date passes, the shares will trade based on the adjusted price and quantity.
Key Takeaways:
- Stock splits make shares more accessible without diluting your investment.
- Reverse stock splits consolidate shares and increase the price per share proportionally.
- Syfe handles the adjustments automatically and no action is required from you.
