Issuing a stock split
Carta fully supports stock splits.
1. To record a stock split, navigate to 'Shares' under Securities.
2. Click 'Manage Share Classes' in the right-hand corner, then select 'Request split' from the drop-down menu.
3. In the popup, enter the split date, split ratios, and any other details related to the split.
NOTE: If the account was onboarded in post-split quantities and prices and the historical pre-split quantities need to be added, mention "historical stock split" in the additional notes section.
4. Once received, the Carta team will model your stock split and provide a pro forma Excel cap table for your review.
We typically deliver the first pro forma workbook within five business days. We'll ask you to confirm that all known pre-split activity is already recorded and up to date on Carta.
5. Review the pro forma cap table and notify us when you're ready to effect the split.
6. Once notified, the split will be recorded on Carta.
We do not send out notifications to shareholders when a stock split is recorded. Securities are split in place - we do not re-issue securities. Your ledgers and cap tables stay clean, just in post-split figures.
For example, if CS-10 was originally issued for 50,000 shares and then split with a 1:10 forward split, CS-10 after the split date will reflect 500,000 shares and will include a banner across the top of the certificate that reflects the split.
When you run reports on a pre-split date, we automatically report pre-split data (including pre-split cap tables, ledgers, etc).