GME 4:1 Stock DIVIDEND split?

[acornopolis]

Hi. I am a little bit confused about the method used to do the GME stock split.

I do received an email from IG regarding the GME 4:1 stock split that creates more confusion than clarifies the things. There it is no reference that the split it is created through a dividend instead of a regular stock split.

My question it is if the Stock split it was created using the:

a) Forward stock split, function code FC-02, ISO event code SPLF

or

b) Dividend stock split, function code FC-06, ISO event code DVSE

It is a huge difference between this two ways of doing the stock split and there it is no way to check how my new shares was created after the 4:1 split.

I will appreciate some clarification regarding this subject from the IG staff.

 

Best regards.

[akimeh]

Yes gme  holder here. Really need this question answered. 

[ArvinIG]

On 07/08/2022 at 03:47, acornopolis said:

Hi. I am a little bit confused about the method used to do the GME stock split.

I do received an email from IG regarding the GME 4:1 stock split that creates more confusion than clarifies the things. There it is no reference that the split it is created through a dividend instead of a regular stock split.

My question it is if the Stock split it was created using the:

a) Forward stock split, function code FC-02, ISO event code SPLF

or

b) Dividend stock split, function code FC-06, ISO event code DVSE

It is a huge difference between this two ways of doing the stock split and there it is no way to check how my new shares was created after the 4:1 split.

I will appreciate some clarification regarding this subject from the IG staff.

 

Best regards.

Hi @acornopolis,

We are unable to ascertain how the company processed this event, but from IG's end we mirrored the custodian and it seems they processed this as a stock split. 

The client would have an extra 3 shares for each one held before Ex-date and the new market (after Ex date) price would be feeding into the give the client’s P/L.

We won't know how the company recorded it.

Thank you - Arvin

[ncalvelo]

who is the custodian?

[ArvinIG]

13 hours ago, ncalvelo said:

who is the custodian?

Hi @ncalvelo,

For Share trading accounts, IG operates a direct custody model. This means shares purchased through IG will be held by Citi as the legal owner, with IG as the beneficial owner.

The client is the ultimate beneficial owner, therefore the additional shares were received by Citi for our aggregated holding for all clients in accordance to the terms, IG then booked the shares on each client's account.

I hope that it helps !

Thank you - Arvin