What is a reverse stock split, and how does etoro handle them?
Last updated: 12 August 2026
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A reverse split is a market event whereby a company decides to reduce the number of existing shares and in so doing, increase the value of each share according to a certain ratio. For example, if the ratio is 1:2, the stockholder will have 1 share for every 2 shares previously held.
The amount of shares is reduced by the same ratio in order to offset the artificial rise in value, whilst maintaining the same overall value of the holding.
How does etoro handle a reverse split?
Before the market opens, both the number of units you hold and the asset’s price are adjusted in line with the issuing company’s terms and conditions, ensuring that all subsequent profit calculations are correct.
What if I hold a CFD position?
CFD positions are handled in the same manner as positions backed by the underlying asset.
Learn how Stock Margin positions are handled in the event of a reverse stock split
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