EasyEquities, enables investors to purchase fractional shares, allowing for investment in high-priced stocks without the need to buy whole shares. When companies undergo corporate actions, such as stock splits, mergers, or spin-offs, EasyEquities has established procedures to manage these events, ensuring that both whole and fractional shareholders are treated equitably.

Understanding Corporate Actions

Corporate actions are decisions made by a company’s board of directors that bring about changes to the company’s stock. Common corporate actions include:

• Stock Splits: An increase in the number of shares outstanding, reducing the price per share proportionally.
• Reverse Stock Splits: A decrease in the number of shares outstanding, increasing the price per share proportionally.
• Mergers and Acquisitions: The combination of two companies into one, potentially affecting shareholders’ holdings.
• Spin-offs: A company creates a new independent company by distributing new shares to existing shareholders.

Handling Stock Splits and Reverse Stock Splits

In the event of a stock split, EasyEquities adjusts investors’ holdings to reflect the new share structure. For example, in a 2-for-1 stock split, an investor holding 0.5 shares would see their holding increase to 1 share, while the price per share would halve, leaving the total investment value unchanged. This adjustment applies proportionally to both whole and fractional shares.