Stock Split FAQ

The Trade Desk’s Board of Directors recently approved a ten-for-one stock split. What is a stock split?

In a ten-for-one stock split (effected in The Trade Desk’s case as a stock dividend), each holder of stock receives nine additional shares for each share owned. The stock split increases the number of shares outstanding by a factor of 10 and the corresponding market value per share decreases by a factor of 10.

Example:
Assume that as of June 9, 2021 (the record date) an investor owns 100 shares of common stock and the market price is $650 per share. The investor's total investment value would be $65,000. At market open on June 17, 2021 (the ex-dividend or effective date), the investor would then own 1,000 shares of common stock at a market price of $65 per share (assuming no changes in the $650 stock price between the Record Date and closing on June 16, 2021). The investor's total investment value would remain the same at $65,000.

For Registered Owners: The Trade Desk’s record keeper, Computershare, keeps a record of your shares on the Company's register of owners. Computershare will notify you reflecting the additional shares.

For Shareholders with Shares Held at a Broker: If you hold your shares with a broker in "street name," your brokerage account would be credited with the additional shares.

When is the stock split effective?

The Record Date, June 9, 2021, determines which shareholders are entitled to receive additional shares due to the split. However, you will not receive the additional shares, and your brokerage account will not be credited, until after market closing on June 16, 2021 which is the "distribution date.”

The Distribution Date, June 16, 2021, is the date shareholders of record are notified of the shares received as a result of the stock split.

The Effective Date or Ex-dividend Date, June 17, 2021, is the date when The Trade Desk common shares will trade on the NASDAQ at the new split-adjusted price.

What if my shares are held with a broker?

You will not need to take any action if your shares are held with a broker. You should receive a stock split notification and your additional shares should be reflected in your account following closing on the distribution date of June 16, 2021. Please contact your broker for specific information.

When will the market price reflect the split?

Although the stock split is legally effective on the Record Date of June 9, 2021, the trading price of the The Trade Desk common stock on the NASDAQ will not reflect the split until the day after the distribution date of June 16, 2021. Trading between June 9, 2021 and June 16, 2021 will generally occur on the same basis as it did prior to the announcement of the split. Effective June 17, 2021, the next business day after the distribution date, trading will reflect the split and, therefore, the trading price or the market price will be approximately one-tenth the prior day's closing price.

What if I sell shares of The Trade Desk common stock that I purchased prior to the Record Date?

If you sold your shares before the Record Date, you will not be entitled to receive the additional split shares.

What if I sell shares of The Trade Desk common stock after the Record Date of June 9, 2021, but before the close of trading on the Distribution Date of June 16, 2021?
From the Record Date of June 9, 2021 to the close of trading on the distribution date of June 16, 2021, shares of The Trade Desk common stock continue to trade at the pre-split price. Because in this situation sellers received full value of the shares they sold, they are not entitled to the split shares after the distribution date of June 16, 2021 and the right to those split shares will transfer (as a due bill) to the purchaser.
What happens if I buy shares of The Trade Desk common stock after the June 9, 2021 Record Date but before the end of trading on the June 16, 2021 Distribution Date?

If you buy shares of The Trade Desk common stock at the pre-split price after the Record Date on June 9, 2021 but before the end of trading on the Distribution Date of June 16, 2021, you are entitled to receive the split shares. The shares you purchased had a “due bill” attached, entitling you to the split shares. Due bills can take multiple days to settle and show up in your account. Please contact your broker for more information.

Is the stock split a taxable transaction?

The receipt of the additional shares in the form of a stock dividend will not result in taxable income under existing U.S. tax law. The tax basis of each share owned after the stock split will be one-tenth of what it was before the split. The new shares will be treated as if they were acquired on the same date as the shares with respect to which they were issued. Individual shareholders should consult a tax advisor with questions regarding their specific tax situation.

Does the ten-for-one stock split dilute the value of my The Trade Desk stock holdings by increasing the number of shares outstanding?
No. The stock split does not change the proportionate interest that a shareholder holds in The Trade Desk. A shareholder who owned 1 percent of The Trade Desk common stock before the split will continue to own 1 percent of The Trade Desk common stock after the split.