Frequently Asked Questions
Corporate Actions
What is a stock/share split?
In a stock/share split, each of the outstanding shares of a company is divided, thereby lowering the price of each share, while the total number of outstanding shares increases.
A company may conduct a stock split in order to boost the liquidity of their stock. The lowering of their stock price will make the company’s stock more affordable and may attract more investors. This is also done without actually lowering the total value. Stock splits are often viewed positively as they can be an indication of confidence in growth.
Here is a simple example of a stock/share split: Company A has undergone a 3 for 1 stock split, which means that shareholders have received 3 shares of the new stock for every 1 share that they previously owned. If the shareholder had originally owned 1000 shares before the stock split, they would now own 3000 shares after completion of the split.
If the share price was originally US$30, which means that the shareholder had a total share value of US$30,000, after the reverse split, they would still have a total share value of US$30,000 with each share being worth US$10.
Other faq that might help you
- What are corporate actions?
- What is a reverse stock split?
- What are dividends?
- What is a rights issue?
- Where can I find the list of corporate actions taken by companies listed on SGX?
- How much are the dividend charges?
- How much are the corporate action charges?
- What effect do corporate actions have on prices?
- What is fractional share?
- What is Cash in Lieu (CIL)?
- What will happen to the fractional share/CIL resulting from corporate action?
- Why does Phillip Securities go cheque-free?
- How do I receive my SGD cash balances from my Cash Trading account?
- How do I apply for EPS service?
- What happens when Phillip Securities goes cheque-free and I do not sign up for EPS/Giro service for my Cash Trading account?
- What is the fee for withdrawal of cash balance from my Cash Trading Account?
- How do I log in to submit my corporate action instructions?
- Will I receive a confirmation notification on the completed submission from Phillip Securities Pte Ltd?
- Can I amend my Corporate Action Event response if I have a change in mind after submitting?
- Is there an option to create a standing instruction?
- How do I cancel the standing instruction I have submitted?
- Will I receive any notification when a Corporate Action that required my attention is posted?
- What will happen if I miss the Closing Date for instruction submission for the corporate action event?
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