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.

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.