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Tokenized stocks such as [Backed xStock](/data-streams/reference/report-schema-v10) handle stock splits differently
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using activation dates and staged multipliers to maintain price continuity. [Learn more about advanced stock split
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handling](#stock-splits).
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</Aside>
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A stock split increases the number of shares while reducing the price per share (e.g., 2-for-1 split), often making shares more accessible to investors. A reverse split does the opposite, consolidating shares to increase the price per share.
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A 2-for-1 split would reduce the price by 50% from the previous trading session, any leveraged user could get liquidated.
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In the [v10 report schema](/data-streams/reference/report-schema-v10), continuity is preserved by staging a multiplier change with a scheduled `activationDateTime` so the Theoretical Price (`price`\*`currentMultiplier`) remains continuous. Split ratios are typically known in advance, but activation may occur while markets are closed, so some external price sources may not reflect the split until trading resumes.
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<Asidetype="note"title="Note">
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This guidance focuses on multiplier handling in the [v10 report schema](/data-streams/reference/report-schema-v10) and
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what integrators should expect around activation windows and protocol behavior. Similar principles may apply to future
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schemas that host tokenized stocks, but applicability and exact behavior will depend on each schema's design and are
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not guaranteed.
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This guidance is designed for multiplier handling in the [v10 report
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schema](/data-streams/reference/report-schema-v10) and what integrators should expect around activation windows and
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protocol behavior. Similar principles may apply to future schemas that host tokenized stocks, but applicability and
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exact behavior will depend on each schema's design and are not guaranteed.
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</Aside>
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#### Guiding principle
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Users should pause markets before `activationDateTime` and keep them paused until:
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-the market has reopened (monitor `marketStatus`),
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-`price` has updated in line with the split ratio (e.g., 10:1), and
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-you have verified the Theoretical Price matches expectations.
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-The market has reopened (monitor `marketStatus`)
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-`price` has updated in line with the split ratio (e.g., 10:1)
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-You have confirmed that the Theoretical Price matches expectations
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After all the above checks have been confirmed, users can unpause their protocol and continue and resume normal operation.
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