What is a stock Split?
A stock Split is when a company decides to Split one high-priced share into several lower-priced shares—without changing the total value of your investment.
So, you’ll end up with more shares at a lower price, but your total investment stays the same.
Why do companies do this?
Companies typically do stock Splits to:
Make shares more affordable to smaller investors
Increase liquidity (more shares in the market)
Attract more traders and improve market perception
Simple example: TSLA
Let’s say on March 31, you own 5 shares of TSLA, each worth $1,000. Your total holding is $5,000.
The company announces a 10:1 Split effective April 1, meaning you’ll get 10 shares for every 1 you own.
🔄 After the Split:
You now hold 50 shares (5 x 10)
The new price per share is $100
Total investment remains $5,000
✅ Your value stays the same — only the number of shares and price per share change.
What happens to the chart?
When a Split happens, all price charts are automatically adjusted to reflect the change. Historical prices are recalculated as if the new Split price had always existed — so the chart remains accurate and smooth.
How does this look in Libertex?
On your Libertex account:
You’ll see changes in the opening price and volume of your position.
A stock Split is a technical adjustment, not a trading opportunity: You don’t gain or lose money from the Split itself.
Real-world example: MasterCard (MA)
📅 On January 22, 2014, MasterCard Inc. completed a 10:1 stock Split.
Before the Split, the share price was around $830. After, it dropped to $83, and shareholders received 10 shares for each one they previously held.
➡️ So if you had 1 share at $830, after the Split, you had 10 shares at $83.
💼 Total value: still $830.
What if you have an open trade?
If you have an active trade during a Split, Libertex automatically adjusts your opening price, so your profit/loss stays unchanged.
🧾 Example:
You opened a trade on MA at $800 per share, volume $100, multiplier 50.
If the price had gone up to $830, your profit would have been about $187.50.
After the Split, the price becomes $83, and your opening price becomes $80.
🎯 Bottom line: Your financial result is the same.
⚠️ Important notes
Keep these in mind:
A Split does not affect the total value of your positions.
It’s a technical process, not a trading event.
You cannot gain or lose directly from a stock Split.
✅ In summary
What Changes | What Doesn’t Change |
Price per share | Total investment value |
Number of shares | Financial result of open trades |
Adjusted price chart | Company market cap |