How does a 3/2 stock split work if you have an uneven number of shares?
★ SUMMARY ★
In today’s video we will go in detail about “How does a 3/2 stock split work if you have an uneven number of shares?”
We will cover the basic concept behind stock splits and how it works. We will also than cover the reverse stock split.
When we talk about stock splits it’s basically a company that’s either reducing the number of shares that you own or increasing the number of shares that you own.
When you have a stock that splits 2 for 1 – that means that you get to shares for every one chair that you own. If you had 20 shares you would get 40 shares, but the stock price gets reduced in half.
If you have a reverse stock split and you have a 1 for 2 with 49 shares you would get 1 share for every 2 that you have – but this creates a remaining 1 share. To solve this problem the market usually will give you the remainder in a cash settlement form so that way there is no discrepancies with an odd share count.
One trading tips for the future is that trading and even share quantities is better or in good multiples such as blocks of 100 shares, 200 shares, 1000 shares are best. If you ca not do it in lots of 100 then do it in batches of 10’s like in 90, 70, 60. It easier for you to calculate the profit and losses in getting in and out of shares.
Another trading tip is avoid odd number lots as sometimes the order might be split and it is difficult to get in and out of later especially with less liquid stocks.
Posted at: http://tradersfly.com/2016/12/32-split-with-uneven-shares/
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