---
title: "How do corporate actions affect long-term orders?"
description: "Understand how corporate actions like share consolidation and share splits affect their execution."
slug: "corporateactions"
locale: "en"
region: "sg"
region_label: "Singapore"
url: "https://longbridge.com/sg/en/support/topics/corporateactions/corporateactions.md"
updated_at: "2025-11-24T07:02:27.000Z"
category: "corporateactions"
category_title: "Corporate actions"
references:
  related:
    - title: "What is a Rights Issue?"
      url: "https://longbridge.com/sg/en/support/topics/corporateactions/stocksubscription.md"
    - title: "Understanding Dividend Selection and Processing Time"
      url: "https://longbridge.com/sg/en/support/topics/corporateactions/dividendselection.md"
    - title: "What's a stock dividend?"
      url: "https://longbridge.com/sg/en/support/topics/corporateactions/stockdividends.md"
    - title: "What's dividend/special dividend distribution?"
      url: "https://longbridge.com/sg/en/support/topics/corporateactions/dividends.md"
    - title: "What is a Stock Split and How is it Processed?"
      url: "https://longbridge.com/sg/en/support/topics/corporateactions/stocksplit.md"
---

# How do corporate actions affect long-term orders?

[Table of Contents](https://longbridge.com/sg/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

**Example:**

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

**Example:**

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.

### 3\. If I have submitted 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).