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What does 'Corporate action' stand for? Corporate stock splits
What does 'Corporate action' stand for? Corporate stock splits

Here, you will find information about when and how the corporate actions are reflected on the Exante trading platform

Updated over a week ago

What is a corporate action?

A corporate action is an event initiated by a public company that can potentially have a material impact on the securities — equity or debt — issued by the company. Corporate actions include stock splits, dividends, mergers and acquisitions, rights issues, and spin-offs. In your Client's Area, it is common to see a 'corporate action' triggered by a stock split.

What is a stock split?

A stock split is a decision made by a company's Board of Directors to increase the number of outstanding shares by issuing additional shares to current shareholders.

What is a reverse stock split?

A reverse stock split is a corporate action that consolidates the number of outstanding shares of stock into fewer, proportionally more valuable ones without changing the company's market value.

These changes are initiated by the companies that issue the securities. Here's how these events will appear in your account.

Example

Reverse splitting shares follows the same logic as someone with 10 single-dollar bills going into a store and asking the cashier to exchange them for a single $10 bill. There is no change in value.

Reverse splits decrease the number of outstanding shares according to the split ratio. For instance, if there are 5 million shares outstanding, they become 1 million after a 1-for-5 consolidation. Conversely, regular splits, or forward splits, work in the opposite direction; a 5-for-1 split transforms 1 million shares into 5 million. Typically, a stock split occurs because a company worries that its share price has become excessively high.

The share prices are affected by the split ratio as well. In a reverse split, one new share is valued at five times the value of the old share, as per the example. Conversely, in a regular split, it's the reverse: the price of each new share is one-fifth of the old share price.

What is a ticker change?

A ticker symbol is the unique name of a publicly traded security. In the same way, as companies change names after acquisitions, the ticker symbol usually changes if a company has been acquired or merged with a different company. The ticker symbol of an acquired company usually changes to the acquirer's after the completion of a merger.

When will the ticker change be reflected on the trading platform?

Ticker changes are reflected on all trading platforms on the effective date, the same day the exchange displays it.

When will the dividend payment appear in the account?

  • Dividend payment transactions will be posted on the Pay Date.

When will I receive dividends for the short positions?

  • Dividend payments for short positions will be locked on the Ex-Date.

If I open a position one day before the Ex-Date, will I be eligible for dividends?

  • Clients who hold shares on the Record Date, i.e., the position is reflected in the account one day before the Ex-Date, will be eligible for dividends.

When will the Tax and Issuance fee charges be applied?

  • Tax and Issuance Fee charges will also be applied on the Pay Date, together with dividend payment.

Where can I see the dividend payments I've received?

You can see the dividend payments in your Client’s area in the Transactions section by selecting “DIVIDEND.” Hovering the mouse over the transaction name will reveal additional transaction-related information.

Where can I find the dividend payout date on the trading platform?

You can find the upcoming dividend payment dates on the trading platforms. Simply open the chart. The dividend payout date is indicated by a "D" letter in a green square, as illustrated in the screenshots below:

Desktop trading platform

Mobile trading platform

Web trading platform

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