What is a corporate action, and what do I need to do when I receive one?
A corporate action refers to any measure undertaken by a company that directly impacts its shareholders. These actions vary widely, ranging from financial distributions to structural changes within the corporation.
Some common examples of corporate actions include:
- Dividend payments – Companies distribute earnings to shareholders.
- Stock splits – Existing shares are divided into multiple new shares to adjust the price per share.
- Tender offers – A company offers to buy back shares from shareholders at a specified price.
- Mergers and acquisitions – Companies combine or acquire other entities, altering shareholder ownership and investment structure.
Corporate actions can be mandatory, where shareholders do not need to take action, or voluntary, where they have choices regarding their investment.
Where do I find corporate actions in my account?
Please login to Totality Edge or Apex trading platforms to begin.
1) Once logged in, please click your account mamagementr icon.
2) Proceed to click 'Corporate Actions'.
3) Please see your corporate actions past and current events here.
What do I need to do when I receive one?
When you receive a corporate action, the steps you take depend on whether it's mandatory or voluntary:
Mandatory Corporate Actions
These occur automatically, requiring no action on your part.
Examples include dividend payments, where funds are credited to eligible shareholders.
Simply monitor your account to see the impact.
Voluntary Corporate Actions
You need to make a decision between two or more options.
Common examples include share issuances, where you can choose to buy additional stock at a set price.
Follow these steps:
- Review the details – Check what options are available.
- Evaluate your choices – Consider how each option affects your investment.
- Submit your selection before the deadline – If you don’t respond, the default option will be applied.
- Track the outcome – Once processed, check your portfolio to see the effects.
Checking Upcoming Corporate Actions
If you want to see future corporate actions:
Use your account filters and select "Show upcoming events."
Keep in mind that upcoming events may change before final confirmation.
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