What happens during a stock split or reverse stock split?
These are generally handled automatically.
We close your existing position at your opening price and open a new position with size and price adjusted to the split ratio. Your overall profit/loss stays the same.
Stops and limits are also adjusted by the same ratio.
Any pending orders are deleted before the market opens on the ex-date. You can place new orders once the market opens.
What happens if a company changes its name or ticker symbol?
Your holdings are updated to reflect the revised details on, or around, the effective date.
Name and ticker changes don’t normally affect your economic interest in the stock.
What happens during a spin-off?
We apply a cash adjustment to your account on the ex-date to reflect the impact on your open position.
Pending orders in the stock are deleted before the market opens; new orders can be placed once trading resumes.
Where operationally possible, we will also book a new position in the spun-off company at the event ratio.
Can I participate in all corporate actions?
No. Mandatory corporate actions are processed automatically and require nothing from you. Voluntary corporate actions are not available due to operational limitations. For these events, we apply a cash adjustment to account for any price dilution in the underlying stock.
Can I participate in rights issues?
No. We apply a cash adjustment on the ex-date instead.
Pending orders in the stock are deleted before the market opens; new orders can be placed once trading resumes.
Can I participate in tender offers?
No, due to operational limitations.
Short positions in stocks subject to tender offers may create obligations under the terms of that offer. Where this applies to your account, we will contact you with the relevant details and any deadlines you need to act on.
Can I participate in exchange offers?
Generally, no. Where participation is available, we’ll contact you with relevant details and deadlines in advance.
Can I choose between cash and stock alternatives?
Some corporate actions offer shareholders a choice between cash and additional shares.
Capital.com does not currently support elections due to operational limitations. A default option applies, which is usually cash. In some cases, where operationally supported, we may apply a combination of cash and stock.
Why are voluntary corporate actions not available?
Due to operational limitations. For these events, we apply a cash adjustment to account for any price dilution in the underlying stock.