Price adjustments

When a stock goes ex-dividend, ignoring other market forces, the value of that stock effectively falls by the dividend amount. In most cases, this will cause the index value to drop since the index’s value is calculated from the value of the stocks within it. The amount that the index drops depends on the stock’s weighting within the index. If more than one constituent stock of an index goes ex-dividend on the same day, we add the number of points each stock will cause the index to drop by together to calculate the total dividend amount.

As you would have benefited from the artificial price movement when you should not have, the equivalent amount is debited from your account to offset this. Overall, you do not lose or gain anything due to this price adjustment.

With a rights issue, a company will offer its shareholders a chance to buy newly issued shares, usually at a discounted price, before they are offered to the public.

Stock splits usually happen when the value of a company's stock becomes too high. The company essentially offers more stocks at a lower price.

Here's a typical example:

1. You hold 300 units in company Q at 1,607 per share.

2. Q announces on R date, that it will be issuing a stock split of 5 for 1.

3. For every 1 stock you hold, you will be issued 5.

4. Now you will hold 1,500 units at the reduced price of 321.4.

Note: the overall contract value remains the same: (300 units x 1,607 = 4,821; 1,500 units x 321.4 = 4,821)

Price adjustments may be applied to your account where you hold positions on relevant shares or cash indices.

If the listed issuer of a security (that you hold an open position on with us) announces a share sub-division or share consolidation, or changes its capital structure by way of rights issues, bonus issues, or cash dividend payments, we'll make an appropriate adjustment on the relevant listed share on the ex-dividend date, or the corporate action effective day.

If you have a buy position, for example, on a company which announces a dividend, your account will be credited/debited before markets open on the day the stock goes 'ex-dividend'.

Here's a typical example:

1. StarHub announces a $0.15 dividend.

2. You currently hold 3,000 units of StarHub.

3. $0.15 x 3,000 = $450

4. $450 will be credited to your account.

Please note that the amount that you're credited or debited will be subject to the relevant tax holding rates in the region where the share is listed.