Following the recent GME share split, we have put together the following FAQ to help our clients understand the event and how this affects your holding of GME shares:
- GME announced a stock split that would be executed on 21st July 2022 by a 4:1 ratio, which meant that everyone holding one share of GME would be receive three additional shares
- The value of each share would be on ¼ of the price that they formerly trade at. For example if 1 share was worth USD 1.00 then each new share would be worth USD 0.25
- In order to process the split, Saxo followed the industry standard approach by debiting the original position and then creating a new position to reflect the split.
- Client’s who were impacted by the split will not have lost any value in their holdings, nor incur any tax implications
- To avoid any confusion about the type of event this was, Our custodian* provided confirmation at the time of processing that the event was a stock split and not a dividend
*A custodian or custodian bank is a financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks or other assets in electronic or physical form on behalf of their customers.
Should you require any further information, please do reach out to Account Services who will be more than happy to assist. You can request support from within the trading platform by following the below steps:
On SaxoTraderGO and SaxoTraderPRO
- Click the support icon '?'. On SaxoTraderGO mobile tap on the main menu > Help Centre
- Select Contact us
- Select the topic related to your query
- You can then either Chat, Call us, or Email us.