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ChrisGraley (29.68)

What happens when you close a stock that just split?

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October 05, 2009 – Comments (3)

I was all happy closing my DEER short today after seeing a 50% drop in price. Then I realized that they hadn't adjusted the starting price for the stock split and the stock actually rose today. I immediately canceled my close, but I see that others did close their picks. Will these guys take a big hit when the starting price is readjusted? If I wouldn't have remembered the split I would have been in the same boat. There's got to be a better way to account for splits in CAPS.

3 Comments – Post Your Own

#1) On October 05, 2009 at 4:37 PM, TMFJake (74.59) wrote:

We split adjust any picks that were open on the split date.  While sometimes there is a time delay in entering the split-adjustement to everyone's start price, we apply this adjustment to all picks that were active on the effective date of the split.

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#2) On October 05, 2009 at 4:41 PM, ChrisGraley (29.68) wrote:

So the guys that closed their picks are in for a surprise tommorrow?

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#3) On October 05, 2009 at 5:09 PM, TMFJake (74.59) wrote:

Yes, if someone attempts to game the system by closing a pick prior to a split-adjustment occuring within our system (presumably because they have an underperform call), then they will be in for a surprise...

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