MELROSE DEMERGER

[eddyed]

Can anyone confirm how the Dowlais demerger and consolidation of Melrose shares will be adjusted for - opening prices/limit levels etc. - If there is a linke please advise

Thanks  

[OfentseIG]

3 hours ago, eddyed said:

Can anyone confirm how the Dowlais demerger and consolidation of Melrose shares will be adjusted for - opening prices/limit levels etc. - If there is a linke please advise

Thanks  

Hi @eddyed

Depending on the type of account you have, these are the procedures:

How does a stock split or consolidation affect my spread bet or CFD account?
The standard process is for us to close your original position at your initial trade opening level (ensuring no profit or loss is realised) and open a new trade on your behalf reflecting the ratio of the split/consolidation.

Any attached stops or limits will be adjusted according to the terms of the split/consolidation to ensure your monetary risk remains the same.

How does a stock split or consolidation affect my share dealing or ISA account?
The standard process is for us to close your original position (date of stock split) at your initial purchase price of the shares (ensuring no profit or loss is realized) and open a new trade on your behalf with the number of shares in accordance to the terms of the split/consolidation and at a book cost of zero. If you need to change your book cost, you can find out more information here(hyperlink).

This process may affect your profit/loss figures as the number of your shares will increase (for stock splits) or decrease (for consolidations) in proportion to the split ratio but the book cost will reflect as zero. To correct this, you will need to manually adjust your book cost

Thanks, 

OfentseIG