A reverse split in a Libertex Portfolio account is the process of consolidating multiple shares of a company into one, along with their combined value.

This consolidation is often needed for convenience, merging small fractional parts into one easily manageable unit.

For example:

In a reverse split of 1000 AMD shares valued at $1 each in a 1000:1 ratio, you would get 1 AMD share valued at $1000. For the AMD shareholder, only the value and number of shares in the portfolio will change, while the total value of the portfolio remains the same.

Before: 1000 shares valued at $1 each.

After: 1 share valued at $1000.*

*In cases where fractional shares are created with a volume less than the minimum, the Client will receive their cash equivalent. The minimum volume for each instrument is specified in the Instrument Specification.