Recently, GameStop (GME and GS2C) announced a 4-for-1 stock split.
In line with the official announcement on the Investor Relations page, it will be paid to all shareholders (Invest & ISA) who held shares at market close on July 21st, 2022.
The announced ratio for the stock split is 4-for-1, meaning that you will receive three additional shares for each share held.
If the split is executed according to the announced plan, it will be reflected by us before the market opens on July 22nd, 2022.
If your shares are lent out, this will not affect the stock dividend distribution in any way.
All event details are accurate at the time of writing and are subject to change.
You can also check the Help Centre article on the topic here.
So, if I have a CFD on GME on the ex divided date, and still have it open on the delivery date (the 21st/22nd) I presume that you will adjust the price per stock CFD to 1/4 on my holding, but increase the number of stock CFDs by 4? My question is, is this done in order or all at once?
I can see the possibility that the price adjustment could lead to a margin call and closure of positions before the new share CFDs are credited to the account. Will this happen?
It is not two transactions happening after one another. It is a single transaction.
In share dealing, the old shares would get replaced by the new shares, with the new quantity and price point. Never is there any overlapping between the old/new shares price and quantity.
In CFD, the process will be the same; your old CFD position will be replaced by the matching new position, with no risk for you or the broker of overlap.
That being said, I do not know the details of how T212 will handle their contracts; while this is the most likely scenario, it would technically be possible for them to just keep the old position (if open), based on the pre-split price, and new positions would be based on the post-split price.
I’d say this is unlikely, as it could cause a lot of confusion, but it is perfectly viable, with no added risk for any of the parties.