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Reverse Stock Split (SPLR)

Reverse Stock Split (SPLR)

SFTR Report - ETRM / NEWT | Corporate Action Cluster - Return and New Trade | Cash Move - N

Description

Decrease in a company's number of outstanding equities without any change in the shareholder's equity or the aggregate market value at the time of the split. Equity price and nominal value are increased accordingly.

Best Practice

When booking a stock split the original contract of the loan should be terminated and a new contract posted.

On ex date the price should be held stale in order to account for the post split price change on pay date. (COAC-58)

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