How to handle stock splits


Learn how to handle stock splits

Recommended Approach

  1. Simply go to this page
  2. Fill in the fields accordingly. Remember to use exchange prefix. Example: Use USX:APPL instead of just AAPL.
  3. Done.

The above would create two transactions for you. A sell transaction to sell the shares you own before stock split and a buy transaction to purchase the shares after stock split (Or literally perform what is suggested below for you).


Manual Approach (Deprecated)

For exchanges where the stock code changes after a stock split (e.g. SGX)

  1. Enter a sell transaction (under the old stock code)
  • Quantity: All the shares you hold (Q)
  • Price: The average price you bought the shares at (P)
    Average price is used here because that will include any fees you paid
  • Date: The date should be set to the stock split date.
  1. Enter a buy transaction (under the new stock code)
  • Quantity: The shares you sold (Q) x the split ratio
  • Price: The price you sold at (P) ÷ the split ratio
    Important: The total transaction cost quantity x price must remain the same
  • Date: The date should be set to the stock split date.

Example: You previously bought 100 shares of company A at SGD 20 each (average price of SGD 20.1 each after including fees) and it does a 1-to-2 stock split.

You should:

  1. Enter a sell transaction for 100 shares at SGD 20.1 each under the old stock code
  2. Enter a buy transaction of 200 shares at SGD 10.05 each under the new stock code

I understand that this can be an annoying extra step, but since I do not have accurate stock split data, it is not possible to automate this.

For exchanges where the stock code does not change after a stock split

For stock splits

Enter a buy transaction at price 0, for the amount of shares you will additionally gain on the stock split date.

For reverse stock splits
  1. Enter a sell transaction
  • Quantity: All the shares you hold (Q)
  • Price: The average price you bought the shares at (P)
    Average price is used here because that will include any fees you paid
  • Date: The date should be set to one day before the reverse stock split date.
  1. Enter a buy transaction
  • Quantity: The shares you sold (Q) ÷ the split ratio
  • Price: The price you sold at (P) x the split ratio
    Important: The total transaction cost quantity x price must remain the same
  • Date: The date should be set to the reverse stock split date.

Note: The sell and buy dates must be different because if you sell and buy on same date, StocksCafe always assume buy happens first before sell to prevent short-selling.

Example: You previously bought 100 shares of company A at SGD 20 each (average price of SGD 20.1 each after including fees), and it does a 2-to-1 stock split.

  1. Enter a sell transaction for 100 shares at SGD 20.1 each (Total transaction cost = SGD 2010)
  2. Enter a buy transaction for 50 shares at SGD 40.2 each (Total transaction cost = SGD 2010)


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