Manage Corporate Actions
Introduction
A corporate action is a material event initiated by a publicly traded company that directly affects its securities — for example, stock splits, reverse splits, or ticker changes. These actions often require board or shareholder approval and can significantly impact share value or corporate structure.
The platform's Corporate Actions module enables you to track, manage and process these events, ensuring accurate reflection in your holdings and transaction history.
Important: Corporate actions are not supported for Private instruments.
How Corporate Actions Work
Corporate actions in the platform follow a two-step process:
Step 1: Create at Instrument Level
First, you define the corporate action at the Instrument level, specifying:
Type of action (stock split, ticker change, etc.)
Effective date
Parameters (split ratio, new ticker symbol, etc.)
Step 2: Apply to Orders/Holdings
Once created, the corporate action is automatically or manually applied to:
Existing orders containing that instrument
Client holdings and portfolios
Transaction history
📌 Key Rule: Corporate actions must be created at the Instrument level before they can be applied to Orders or reflected in client accounts.
Permission Requirement
Tab / Feature | Permission Level |
Instruments | View, Modify, Create |
Corporate Actions (On Instruments) | View, Modify, Create |
Corporate Action (On Orders) | View, Modify, Create |
Key Terminologies
Term (A-Z) | Definition |
|---|---|
Corporate Action | A material event initiated by a publicly traded company that directly affects its equity or debt securities, such as stock splits, dividends, mergers, or ticker changes. |
Custodian | A financial institution responsible for holding and safeguarding securities, and ensuring accurate transaction records. |
Equity Securities | Shares representing ownership in a company, such as common or preferred stock. |
Debt Securities | Financial instruments representing money borrowed and to be repaid, such as bonds or notes. |
Stock Split | A corporate action where a company increases the number of outstanding shares, proportionally reducing the share price to maintain overall market capitalization. |
Reverse Stock Split | A corporate action where a company reduces the number of outstanding shares, proportionally increasing the share price, often to meet listing requirements or improve perceived value. |
Ticker Change | A corporate action in which a company changes the trading symbol of its security, usually due to rebranding or corporate restructuring. |
Mandatory Corporate Action | A corporate action executed automatically by the company, requiring no action from shareholders. |
Voluntary Corporate Action | A corporate action that requires shareholders to make a choice among options offered by the company. |
👉 New to some terms? Check our full Platform Glossary for quick definitions.
Supported Corporate Actions
The platform currently supports three types of corporate actions:
1. Stock Splits
Increases the number of shares while proportionally reducing the share price.
Example: A 2:1 split converts 100 shares at $50 into 200 shares at $25
Use case: Making shares more affordable to retail investors
2. Reverse Stock Splits
Reduces the number of shares while proportionally increasing the share price.
Example: A 1:5 reverse split converts 500 shares at $2 into 100 shares at $10
Use case: Meeting exchange listing requirements or improving perceived value
3. Ticker Changes
Updates the trading symbol of a security.
Example: Changing from "FB" to "META" after rebranding
Use case: Company rebranding or corporate restructuring
Coming Soon: Additional corporate action types (dividends, mergers, spin-offs) will be supported in future releases.