Corporate actions are events that affect the underlying value of a stock. These include dividend payouts, stock splits and share buy backs. By holding a share CFD contract, your position also reflects the corporate action taken by the underlying stock. These corporate actions will take place during market close.

Dividends- Dividend payouts will reflect as a deposit credit to the client’s account as long as a position is held open on the effective date. Alternatively, a debit is taken out of the account if a short sell position is held open on the stock.

Stock splits- Stock splits occur when the company decides to increase the number of shares in the company by splitting existing shares on a predetermined ratio. In the case where a company splits shares of its stock, the open contract will reflect the new number of contracts open along with the new price. Please note that in the case of a stock split, a new position will be opened on the client’s account displaying a new symbol name along with a new number of shares and open price.

Stock buybacks- Buybacks are essentially the opposite of splits whereas the number of shares of an underlying stock are reduced. In the case of a buyback, the open contract will reflect the new number of contracts along with the new open price. Please note that in the case of a stock buyback, a new position will be opened on the client’s account displaying a new symbol name along with a new number of shares and open price.