How are fractional entitlements handled during corporate actions?
Where a corporate action results in a fractional entitlement, fractions may not always be capable of direct allocation.
Fractional entitlements may be aggregated, rounded, sold or converted into cash depending on market practice, custodian processing and operational feasibility.
What is cash-in-lieu?
Cash-in-lieu is a cash payment made instead of allocating a fractional entitlement that cannot be directly credited to your account.
Where applicable, the cash amount received is allocated proportionately based on your entitlement.
Can fractional shares be transferred?
Fractional holdings are generally not transferable.
Where a transfer of securities is requested, fractional positions may need to be sold or otherwise settled before the transfer can be completed.
Do fractional holdings have the same rights as whole shares?
Fractional holdings generally provide proportional economic exposure to the underlying stock.
However, certain rights and entitlements, including voting rights, transferability or participation in some corporate actions, may be limited or unavailable.
*Stocks are available in selected countries and are currently limited to existing clients.