Corporate Actions: Mergers

Corporate Actions: An Overview

Corporate actions like mergers, stock splits, spin-offs, and bankruptcies are common in today’s financial markets—but they can significantly affect the underlying securities and their related options contracts.

Corporate Actions: Forward Splits

A forward stock split increases the number of outstanding shares while reducing the price per share proportionally - but what does this mean for option holders?

Corporate Actions: Reverse Stock Splits

A reverse stock split reduces the number of a company’s outstanding shares while increasing the share price proportionally—but what does this mean for option holders?

Options FAQ: Are there exercise restrictions when there is a corporate action?

When corporate actions occur, many investors wonder whether there will be any exercise restrictions for their options.