Corporate Actions

CFDs on shares are listed on the basis of the market bid or ask price corresponding to the equity security that they reflect. The margin is calculated on the opening value of the transaction. It is possible to consult the page on margins for further details.

Corporate Actions – Overview of corporate events

Positions on CFDs on shares reflect the trend of the equities to which they are linked, for example, dividends to which the trader is entitled are paid if the position is long, whereas the equivalent will be charged if the trader holds a short position. A brief overview of the main corporate events is set forth below.

Dividends

Dividends are calculated when the ex-dividend date on the underlying equity market has expired (such procedure is also valid for special dividends). In the case of long positions, matured dividends are credited to the customer’s account, whereas the corresponding amount is deducted for short positions.

Stock split / Reverse stock split

New positions that are opened are allocated on the effective date of the corporate action. All of the positions are closed at the opening price, without calculating profit, and are reopened calculating the quantity of stock and the relative price. All open positions are also modified.

Stock rights

On the issue date of the rights, the subscription price of the underlying share is checked against the closing price of the share on the last trading day before the ex-date. The subscription price is deemed to be “in the money” when it is below the closing price of the share on the last trading day before the ex-date and vice versa – it is “out of the money” when it is above the share price on the last trading day before the ex-date. If the subscription price is in the money, the share CFD positions of all traders, that have open Long or Short positions in the underlying share, will be increased accordingly. If the subscription price is out of the money, the share CFD positions will remain unchanged. The number of the new shares to be added to the existing positions will be calculated by multiplying the outstanding volume by the subscription ratio.

Takeover bid

Traders who have CFDs on shares cannot launch takeover bids on the security.

Spin-offs

Positions related to CFDs on underlying equities will be allocated ex-date. Traders with short positions will be charged the corresponding amount, while traders with long positions will be credited.

Mergers

With respect to mandatory mergers, traders of long positions will be remunerated with cash ex-date, following the indications of the corporate action.

Other corporate events

In the case of other corporate events not mentioned in this page, ActivTrades will act on the customer’s behalf, advising the trader and activating the necessary procedures.
Note: trading is not allowed during the phases of the auction.