EFTA01353482.txt Text dataset_10 View on DOJ

This document explains the adjustment rules for stock options with exercise prices stated in points and decimals, and provides examples of how stock splits and stock dividends affect the number of underlying shares and the exercise price. It details how adjustments are made to maintain the aggregate exercise price before and after such events.

Subject

Stock Options with Exercise Prices

Sender

—

Recipients

—

Document ID

SDNY_GM_00184052

Date

—

When a stock distribution, stock split or stock dividend results In the Issuance of one or more whole shares of stock for each outstanding share—such as a 2 for 1 or a 3 for 1 stock split—as a general rule the number of underlying shares will not be adjusted. Instead, the num- ber of outstanding options will be proportionately increased and the exercise price will be proportionately decreased.

As a general rule. adjustments in exercise prices are rounded to the nearest exercise price increment (4 or one cent, as the case may be). and adjustments in the number of underlying shares are rounded down to eliminate frac- tional shares.

Financial transactions/money flow

XYZ CorporationOCC

Tone

Professional

Purpose

To explain the adjustment rules for stock options with exercise prices stated in points and decimals, and to provide examples of how stock splits and stock dividends affect the number of underlying shares and the exercise price.

Significance

This document provides important information about how stock options are adjusted in response to stock splits and stock dividends.

File Name

EFTA01353482.txt

Dataset

dataset_10

Type

Text

Model

gemini-2.0-flash-001

Processed

2026-02-07T18:42:39.990888

DOJ Source

View on DOJ