Create Stock Splits

Introduction

A Stock Split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to existing shareholders, proportionally reducing the share price to maintain the company’s overall market capitalization. Conversely, a Reverse Stock Split reduces the number of outstanding shares, proportionally increasing the share price, often to meet listing requirements or improve perceived value.

Both Stock Splits and Reverse Stock Splits can be classified as:

Mandatory: Automatically executed by the company, requiring no action from shareholders.
Voluntary: Shareholders may have options to participate, depending on the company’s announcement.

Corporate actions are not supported for Private instruments.

Stock Split vs Reverse Stock Split

Learn the Difference Here:

Corporate Action Type	Definition	How It Affects Price	How It Affects Quantity
Stock Split	The company divides its existing shares into multiple new shares.	Price per share decreases based on the split ratio (e.g., in a 2-for-1 split, the price is halved).	The number of shares you own increases based on the split ratio (e.g., in a 2-for-1 split, you get 2 shares for every 1 you own).
Reverse Stock Split	The company consolidates its shares into fewer shares.	Price per share increases based on the reverse split ratio (e.g., in a 1-for-2 reverse split, the price doubles).	The number of shares you own decreases based on the reverse split ratio (e.g., in a 1-for-2 reverse split, you get 1 share for every 2 you hold).

Permission Requirements

Tab / Feature	Permission Levels
Instruments	View, Modify, Create
Corporate Actions (On Instruments)	View, Modify, Create
Corporate Action (On Orders)	View, Modify, Create

Key Terminologies

Term (A-Z)	Description
Action Date	The date when the corporate action (e.g., ticker change) becomes effective.
Adjustment Days	The number of days before the Action Date for which historical prices should be adjusted.
Announcement Date	The date when the corporate action is announced to the public or shareholders.
Compensation Price	The price at which fractional shares will be compensated, if applicable.
Corporate Action	An event initiated by a company that affects its securities (e.g., ticker change, stock split).
Corporate Action Type	Defines if the action is Mandatory (applies to all holders) or Voluntary (requires holder decision).
Current Instrument	The existing instrument (old ticker) before the corporate action.
Fraction Handling Method	The method used to deal with fractional shares resulting from the corporate action. Options include: ROUND_UP: Rounding up fractional shares to the next whole number. CASH_COMPENSATION: Compensation for fractional shares in cash. RETAIN_FRACTIONAL_SHARES: Retaining the fractional shares. ROUND_DOWN: Rounding down fractional shares to the previous whole number.
Instrument	A financial asset like a stock, identified by its ticker symbol or ISIN.
New Instrument	The new instrument (new ticker) replacing the current one.
Price Adjustment	Adjusts the historical price of the original instrument from the Action Date using the adjustment coefficient.
Price Adjustment Factor	A coefficient used to adjust historical prices of the instrument from the Action Date to reflect the impact of the corporate action.
Ratio From	The original ratio of shares before the corporate action. For example, the number of shares held before a stock split.
Ratio To	The new ratio of shares after the corporate action is completed.

👉 New to some terms? Check our full Platform Glossary for quick definitions.

Create Stock Split

Before you can apply a corporate action to an Order, you must first create the corporate action under the Instrument. Once created, it will appear for selection when creating or updating relevant orders.

Go to Instruments tab > Find Corporate Actions tab.
Click + icon to Create New Corporate Action.

A window opens and choose the Corporate Action Type.
Search/Select Stock Split.
Then, click on Create + button.

🔗 Learn here on how to create Reverse Stock Split.

A form opens where you can input the mandatory(*) field details.

Key Fields Here:

Field	Description
Action Type	Choose whether the stock split is Mandatory or Voluntary.
Action Date	Enter the date when the stock split takes effect.
Announcement Date	Enter the date the stock split was announced.
Instrument	Select the ticker symbol of the stock being split.
Ratio From	Enter the original number of shares before the split.
Ratio To	Enter the number of shares after the split.
Fraction Handling Method	Choose how fractional shares are handled: `ROUND_UP`, `ROUND_DOWN`, `CASH_COMPENSATION`, or `RETAIN_FRACTIONAL_SHARES`.
Price Adjustment	Enable or disable automatic price adjustment for the stock.
Price Adjustment Factor	Enter the factor used to adjust the price if price adjustment is enabled.
Adjustment Days	Enter the number of days over which the price adjustment applies.
Description	Add any relevant notes or additional information about the stock split.

Review the split ratio, effective date and instrument selected.
Click Create to finalize the record or Close to discard the changes.

Check the portfolio or instrument summary to confirm the new number of shares and the updated stock price. This should reflect the correct post-split data.

Check Corporate Actions on Instruments

Go to the Corporate Actions tab Dashboard under Instruments.

You can filter the results by Instrument ID, Type, etc to narrow down the search.

Double-click to open the created entry on table or Edit the created entry > Update.