Please note that SHOPIFY INC – CLASS A (SHOP) is going to be split in a 10 for 1 offering on Wednesday, June 29th 2022. Common shares will trade at the new split-adjusted price.
What will this split mean to investors?
Each share of SHOPIFY INC – CLASS A stock that an investor owns before June 29th 2022 will be eligible for stock split. Investors will receive nine additional shares for each share, and the share price will be divided by 10.
Here is an example:
|Pre-Split||Post-Split||As of June 29th, 2022|
|Shares held||100 shares||1000 shares||Shares are multiplied by 10|
|Share Price||$300 per share||$30 per share||Share price is divided by 10|
|Value||$30,000||$30,000||Total value remains equal|
All pending orders will be deleted, including Buy Limit, Sell Limit, Buy Stop, Sell Stop, Buy Stop Limit, Sell Stop Limit.
How do stock split affect short sellers?
Stock split does 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 time and date mentioned in the notification are based on the platform time (GMT+3) and may be subject to change.
Ref: IVM 060-2022