📣📣 REVERSE SPLIT - $ZH (Zhihu Inc-ADR)
Please note, there has been a reverse stock split on $ZH
The ratio for the $ZH reverse split is 1-for-6.
👉 What is a reverse stock split?
A reverse split is a market event where a company decides to consolidate its existing shares into fewer, proportionally more valuable, shares.
The process involves a company reducing the total number of its outstanding shares in the open market according to a certain ratio. For example: if the split ratio is 1:2, then for every two shares previously held, shareholders would now hold a single share.
Subsequently, the price of the share is also adjusted according to the same ratio in order to maintain the same overall value.
👉 How do we respond to a stock split?
Our policy in response to a split is to adjust the opening rate of the position(s) in question to reflect the new rates. This also ensures that all subsequent profit calculations are proportionately correct. Please be aware that any price changes for $ZH and changes in holdings of units are due to this adjustment.
🔊 To sum it up, the price of the asset and the number of units on the positions may change, but the value of all relevant positions remains the same.
Thank you,
- The eToroTeam... Show More
