---
title: "How do corporate actions affect long-term orders?"
description: "Long-term orders remain valid until the specified date, but their execution may be affected by corporate actions. Here’s how it works.1. What is a long-term order?Long-term order is an order type that remains in effect until a specified date unless the transaction has been fulfilled or cancelled. If the trade is not executed, the long-term order will be cancelled after the end of the specified trading day. Long term "
slug: "v7i2n47"
locale: "en"
region: "hk"
region_label: "Hong Kong"
url: "https://longbridge.com/hk/en/support/topics/corporateactions/v7i2n47.md"
updated_at: "2025-10-29T05:52:24.000Z"
category: "corporateactions"
category_title: "Corporate actions"
---

# How do corporate actions affect long-term orders?

[Table of Contents](https://longbridge.com/hk/en/support/toc.md)

Long-term orders remain valid until the specified date, but their execution may be affected by corporate actions. Here’s how it works.

### 1\. What is a long-term order?

Long-term order is an order type that remains in effect until a specified date unless the transaction has been fulfilled or cancelled. If the trade is not executed, the long-term order will be cancelled after the end of the specified trading day. Long term orders include "GOOD TILL DAY (GTD)" and " GOOD TILL CANCELLED (GTC) " orders.

### 2\. Will corporate actions have an impact on the execution of long-term orders?

Whether a corporate action will affect the execution of a long-term order mainly depends on if the corporate action will result in a change with customer's shareholding, such as share consolidation and share split. Please refer to the following examples:

Share Consolidation

Reduce the number of shares outstanding and consolidate existing shares.

(Par value of each stock ↑ Shareholders' shareholding ↓ Market value , total shareholders' equity remain unchanged)

If the customer holds 100 shares of company A and the current stock price is $5, the value of the stock held is 100\*5=$500.

If Company A merges 10 shares into 1 share, the shareholder holds 100/10=10 shares after the merger, the stock price will be 5\*10=$50; The value of the shares held is 10\*50=$500.

If the customer buys 100 shares before the merger, he needs $500; yet, it requires $5000 for the same purchase of 100 shares after the merger.

Due to the changes in the number of shares and market prices after the merger, long-term orders will not be able to take effect.

Share Split

Increase the number of shares outstanding and spin off existing shares.

(Par value of each stock ↓ Shareholders' shareholding ↑ Market value , total shareholders' equity remain unchanged)

If the customer holds 100 shares of company A and the current stock price is $5, the value of the stock held is 100\*5=$500.

If Company A split from 1 shares into 10 share, the shareholder holds 100\*10=1000 shares after the splitting, the stock price will be $5/10 = $0.5 ; The value of the shares held is 1000\*0.5=$500.

If the customer sells 100 shares at $5 before the stock split, that equals $500; yet, if the 100 shares are sold after the stock split, only 1/10 of the original volume will be sold.

Due to the changes in the number of shares and market prices after the merger, long-term orders will not be able to take effect.

From here we can see that this type of corporate action will lead to an impact on long-term orders.

### 3\. If I have issued a long-term order before the Ex-date of relevant corporate action, how will Longbridge handle such a situation?

The long-term order will be cancelled **before the US market opens on the Ex-date** of the corporate action. Please re-issue the order if necessary.

**Disclosures**

*This article is for reference only and does not constitute any investment advice.*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).