What happens during a stock split or reverse stock split?
Stock splits and reverse stock splits are generally processed automatically.
Your holdings will be adjusted according to the ratio announced by the issuer and reflected in your account once the event has been processed through the relevant market infrastructure.
What happens if a company changes its name or ticker symbol?
Where a company changes its name or ticker symbol, your holdings will be updated to reflect the issuer’s revised details once the change has been processed through the relevant market infrastructure.
This type of event does not normally affect your economic interest in the stock.
What happens during a spin-off?
Where a spin-off results in the distribution of new securities, we will allocate the resulting entitlement in accordance with the terms of the event and the information received through our custody chain.
The final allocation may be subject to operational constraints, market practice and the treatment applied by custodians and intermediaries.
Can I participate in all corporate actions?
No. The availability of corporate actions depends on operational support available through our custody chain, market infrastructure and the characteristics of the event.
Some events are processed automatically, while participation in certain voluntary corporate actions may not be available.
Can I participate in rights issues?
Participation in rights issues depends on operational support available through our custody chain and market infrastructure.
Where participation is supported, we will communicate the available options and applicable deadlines. Where participation is not supported, rights may be sold where feasible and any resulting proceeds may be credited to eligible clients.
Can I participate in tender offers?
Participation in tender offers may not always be available.
The availability of these events depends on operational support through our custody chain, market infrastructure and the specific characteristics of the event. Where participation is available, we will communicate the relevant options and deadlines.
Can I participate in exchange offers?
Participation in exchange offers may not always be available.
The availability of these events depends on operational support through our custody chain, market infrastructure and the specific characteristics of the event. Where participation is available, we will communicate the relevant options and deadlines.
Can I participate in warrant exercises?
The availability of warrant exercises depends on operational support available through our custody chain and market infrastructure.
Where participation is not supported, warrants or similar entitlements may be sold, cash settled or otherwise processed in accordance with market practice and operational feasibility.
Can I choose between cash and stock alternatives?
Some corporate actions allow shareholders to choose between different forms of consideration, such as cash or additional shares.
Where elections are supported, we will communicate the available options and applicable deadlines. Where elections are not supported, a default treatment may apply based on the issuer, custodian or market practice.
Why can’t I submit individual elections for some corporate actions?
Stocks held through Capital.com are generally held through an omnibus custody arrangement.
As a result, certain voluntary corporate actions may not support individual shareholder elections and a single treatment may need to be applied across affected holdings.
What happens if I do not submit my election before the deadline?
If a valid election is not received before the applicable deadline, the default treatment applied by the issuer, custodian or market practice may apply.
Deadlines communicated by Capital.com may be earlier than issuer deadlines due to processing requirements within the custody chain.
Why are some voluntary corporate actions not available?
The availability of voluntary corporate actions depends on operational support available through our custody chain, settlement infrastructure, market practice and the characteristics of the event.
Not all corporate actions can be supported in all circumstances.
*Stocks are available in selected countries and are currently limited to existing clients.