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 2 companies into 1 entity
- Spin-offs: creation of a new independent company through the sale or distribution of new shares
Important dates 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: last day a buyer of the stock is entitled to receive the upcoming 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 intend to liquidate them into cash whenever possible, as Revolut does not currently support these security types.