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What is a Split in a Libertex account?
What is a Split in a Libertex account?
Updated over a week ago

A split (or splitting) is the process of dividing one expensive stock into several cheaper stocks of the same company so that the total value does not change.

Example: You have 5 shares of TSLA on 31 March at a price of $1,000 per share, i.e., worth a total of $5,000. The company announces that from 1 April, a 10-for-1 stock split is being carried out, meaning 10 shares will be given for every 1 share currently owned.

So, when the market opens on 1 April, you'll already have 50 (5 * 10) TSLA shares at a price of $100 each. In this case, the total value will remain the same at $5000.

The price chart in all information sources will be adjusted and created according to historical rates, the value of which was divided by ten.

On Libertex, you'll also see the open price and position volume change.

Please note that the change in the share price during a split is a technical process. Nothing fundamental changes, which is why it's impossible to make a profit or loss on the split itself.

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