How does Revolut process Corporate Actions?
A corporate action is any event in a public company that results in changes when it comes to their shares or debt. Revolut will process all mandatory corporate actions and make sure they're reflected on your trading account on time. Mandatory corporate actions include dividends, stock splits, mergers and spin-offs.
To determine who's eligible for certain events, we need to keep in mind a few important dates:
- Declaration date – when a company's Board of Directors announces a key event (e.g. dividends)
- Record date – involves recording the ownership of a security
- Effective date – the date of the corporate action event
- Ex-dividend date – the security trades happen without the value of the dividend. To get dividends, you need to buy your shares before this date, or you won't be eligible for the upcoming dividend payment.
A corporate event or restructuring may result in the distribution of secondary items, like rights or warrants. If this ever happens on a security you hold, we'll liquidate these into cash, whenever we can and where possible, as they can't be held in your Trading account.
We know corporate actions can be extremely complex, but we're doing our best to make these as seamless as possible for you and your portfolio!