Do Stock Splits Affect Limit Sell Orders?

[Soda Popinski]

I'm holding a stock that might reverse split soon. I've set it up to sell at $5.00 but if there's a reverse split, it will be worth more than that. When there's a split or reverse split, are pending LIMIT SELL orders automatically discarded or will they sell despite the drastic change in share price?

Thanks.

[el_diablo007]

PENDING limit sell orders placed before the split are discarded after the stock splits.

When a stock goes through a consolidation or split, your discount brokerage typically takes 5-10 business days to sort out the split, during which time, you can still execute orders but they need to be done by phone.

[Soda Popinski]

Thanks. I was worried that it would sell automatically regardless of the split, resulting in a loss.

[BTron]

This raises another interesting question I always wondered. Say the Bid price on this $5 stock right now is $4.95, if you put in an order to sell the stock for $4.75 would that get immediately filled at $4.75 with someone thinking you were an idiot, or would the market not allow that, bump it up and sell for the going rate of $4.95?

[grant]

With my broker (IB) the order is filled with the best bid price.

I don't know if it's the broker or TSX who raises your offer price to match the bid.