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Corporate actions require you to make choices, you can manage them in the Corporate Action Manager. Examples of Corporate Actions include submitting dividend choices, offering shares for a takeover, or exercising rights. You need to submit these choices before a specific deadline. Below you will find the instructions for doing so.
Navigate to Corporate Action Manager
Once logged in, you will find Help in the top right corner of your screen. Click on it and navigate to Support Center. From there, click on Corporate Action Manager in the list of possibilities.
Select the corporate action
You are now in your Corporate Action Manager. Here, you can consult different tabs based on the type of Corporate Action and whether the choice is mandatory, voluntary, or has already taken place. Click on the desired Corporate Action to enter your choice.
Corporate action information
In this screen, you will find all the information regarding the Corporate Action, including the deadline, conditions, various dates, and the account for which you want to make the choice.
In most Corporate Actions, you will be asked to allocate the number of shares or rights to a specific choice.
Let’s look at a dividend choice as an example. By default, the choice for cash dividend is selected. Additionally, in this case, you can allocate an amount of rights. If you want to receive cash dividend, enter the number of rights in the field of the first row. If you prefer stock dividend, enter the number of rights in the second row.
Confirm your choice
Finally, you will need to confirm your choice by checking the Terms and Agreement box in the bottom left of the pop-up window and clicking on Save in the bottom right.
After this, you will receive a Confirmation Needed pop-up window. Here, you can select Yes to save your choice.
The deadline for submitting Corporate Actions is typically set two days before the official deadline provided by the company initiating the Corporate Action. This allows sufficient time to process and submit the necessary instructions on behalf of our clients.
Please note that specific deadlines may vary depending on the nature of the Corporate Action and other factors.
Received Corporate Actions are also listed in the Corporate Actions section of your account statement.
Dividends are generally displayed on all trading platforms and on the Client Portal. Please refer to the ‘Receive Dividends?‘ tab for more information. Additional details can be found in the Corporate Action Manager in the Client Portal or on the corresponding Investor Relations page of the company.
The ratio of the offering indicates the proportion in which the rights are exchanged to obtain new shares. A ratio of 10:1 means that you can subscribe with 10 Subscription Rights to acquire 1 new share. Both the amount and ratio of the Subscription Rights will be listed in the Corporate Actions section of your account statement.
Submitting Subscription Rights to purchase new shares is generally a voluntary option. Sometimes, these Subscription Rights lose their value if they are not used to purchase new shares. Most of these Subscription Rights have the possibility to be traded before their expiration date.
If you take no action with these rights, these rights will become worthless. The expiration date and (if applicable) proceeds are displayed in the Corporate Actions section of your account statement.
Corporate actions are events initiated by a publicly-traded company that can bring about changes to the company’s structure or impact its shareholders. These actions are typically authorized by the company’s board of directors and may require approval from shareholders in certain cases.
The dividend is determined by the company itself. Some companies allow you to choose between cash and stock dividend. Please note that you may be exempted from corporate actions such as capital increases for legal or technical reasons.
Corporate actions can have several implications for investors:
- Changes in Ownership or Voting Rights: Corporate actions may lead to changes in the ownership structure of a company, potentially affecting voting rights and decision-making power.
- Impact on Share Price: Depending on the nature of the corporate action, the share price may be affected. For example, stock splits and bonus issues generally result in lower individual share prices.
- Opportunities and Risks: Corporate actions can present opportunities for investors, such as the ability to acquire additional shares at a favorable price. However, they can also carry risks, so it’s essential to evaluate the potential impact before making investment decisions.