Corporate actions are events initiated by a company that may affect the securities it has issued. Examples include dividend payments, stock splits, mergers, spin-offs, rights issues and tender offers.
Some corporate actions are processed automatically and do not require any action from you. Others may require an election or instruction from shareholders. The way corporate actions are handled depends on the issuer, market practice, information received through our custody chain and operational support available for the event.
Why are some corporate actions handled differently from traditional brokers?
Stocks held through Capital.com are generally held through an omnibus custody arrangement. This means securities are held collectively with those of other clients and your entitlement is recorded in our internal books and records.
As a result, some shareholder rights and corporate action elections may be subject to operational limitations and may not always be available on an individual basis.
*Stocks are available in selected countries and are currently limited to existing clients.