July 14, 2022
Dear Client,
To provide our clients with a wealth of trading options, VT Markets will optimize the stock products on Jul 18th, 2022:
Type: Stocks (US, UK, EU)
Content:
1. Added 683 stock products to the MT5 server.
2. GOOG (US) stock split.
• The specifications of the new products are shown in the table below.
The above data is for reference only, please refer to the MT5 software for specific data.
Friendly reminders:
1. The new Shares are only available for trading on MT5.
2. Please refer to the specification on MT5 for other details.
3. 1 GBP = 100 GBX
※ GOOG (US stock) stock split details are as follows:
Please be advised of the upcoming ALPHABET INC-CL C (GOOG) stock split that is going to take place as per the following schedule:
Ex-Date: July 18th, 2022. Common shares will trade at the new split-adjusted price.
Important implications of the ALPHABET INC-CL C Stock Split:
1. The quantity of shares of each client’s position will multiply by 20.
2. Post-split, the “open price” and “take profit/stop loss” of each position will be adjusted, which will be the original price divided by 20.
3. The estimated post-split price may be 20/10 of the EOD price on 15th, July.
4. All pending orders at the time of the split (Buy Limit, Sell Limit, Buy Stop, Sell Stop, Buy Stop Limit, Sell Stop Limit) will be cancelled.
5. All ALPHABET INC-CL holding positions and pending orders on DEMO account will be closed as a result of the stock split.
Q. What is a stock split?
A. A stock split is a corporate action taken by companies that have seen their share price increase to levels that are either too high or are beyond the price levels of similar companies in their sector, to divide their existing shares into two or more shares.
Q. Why do stocks split?
A. The primary motive is to make the shares more affordable to small investors even though the underlying value of the company has not changed. ALPHABET would like its stock to be more accessible to a broader base of investors.
Q. What is the split ratio?
A. ALPHABET also announced it will split its stock in a 20 for 1 offering.
Q. What will this split mean to investors?
A. Each share of GOOG stock that an investor owns before Ex-Date (July 18th, 2022) will be eligible for stock split. Investors will receive nineteen additional shares and the stock price will be 1/20.
Here is an example:
If an investor owns 100 shares and the market price is $2,000, $2,100 as take profit. After 20 for 1 stock split, the investor will own 100*20= 2,000 shares and the estimated post-split price would be $2,00/20 = $100, and the take profit price will adjust to $2,100/20=$105.
Q. Does the 20 for 1 stock split mean the value of my GOOG shares will increase nineteen times?
A. Unfortunately, not. As stated in the above example, the increase in the number of stocks means every share is now worth less than its previous value, precisely, it’ll be 1/20th the previous value.
Q. How do stock splits affect short sellers?
A. Stock splits do not affect short sellers in a material way. There are some changes that occur as a result of a split that affects the short position, but they don’t affect the value of the short position(s).
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected]
