How does Revolut process corporate actions?
Corporate actions are events within a public company that affect its issued shares or debt. Here's how Revolut handles them and what you need to know.
Types of corporate actions
The most common corporate actions are:
- Dividends: Payments made to shareholders from a company's profits
- Stock splits: Increase the number of shares outstanding by splitting existing shares
- Mergers and acquisitions (M&A): The combination of two companies into one entity
- Spin-offs: Creation of a new independent company through the sale or distribution of new shares
Important dates for corporate actions
Here are the key dates that determine eligibility and timing for corporate actions:
- Declaration date: Announcement by the company's board of directors regarding a significant event, such as dividends
- Record date: Determines which shareholders are eligible to receive dividends or participate in other corporate actions
- Effective date: When the corporate action officially takes effect
- Ex-dividend date: The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment
During corporate events or restructurings, such as mergers or spin-offs, you may receive secondary items, like rights or warrants. If these are distributed on a security you hold, we'll liquidate them into cash whenever possible, as Revolut does not currently support these security types.