How interactive brokers processes business actions of your sharing effects

If you invest in various individual effects in brokers, there are one thing that investors have to do, business actions on the effects you have.

Today we are going to deal with how you deal with business actions in Interactive brokers.

They are not just dividends.

The most common business actions you were dealing with are perhaps dividends, which you have initially attracted to certain shares.

1. Dividends

• Cash – Company pays shareholders in cash per share.
• Stock dividend (scrip dividend) – Company issues new shares instead of cash.
• Special dividend -A a one -off dividend, often larger than normal.

2. Stock split and reverse splits

• Stock -splitting – Each share is divided into several shares (eg 1 shares → 2 shares), so that the price per share is reduced but not to the total value.
• Reverse split (consolidation) – Multiple shares are combined into fewer shares (eg 10 shares → 1 share), which increases the price per share.

3. Bonus issues (Capitalization of reserves)

• Company issues free extra shares to shareholders, usually in relation to the existing participations (e.g. 1 bonus share for every 5 shares held).

4. Issue

• Shareholders receive the right (but no obligation) to buy extra shares, usually with a discount, within a fixed period.

5. Fusions & Acquisitions (M&A)

• Merger – combine two companies; Your shares can be exchanged for shares in the new entity.
• Acquisition / Acquisition – Your company is bought out, often with shares converted into cash or shares of the acquirer.

6. Spin-off / Demerger

• The company separates a business unit from a new independent company and shareholders receive shares in the new entity.

7. Quit

• Shares are removed from the stock market, voluntarily (strategic decision) or involuntary (non-compliance with the regulations).

8. Liquidation / Bankruptcy Procedures

• If a company ends, assets are sold and the proceeds (if present) are distributed among creditors and shareholders (ordinary shareholders are the last in line).

If you have a few effects, you hope to be informed about it and they don’t have to look up.

It is crucial that some business actions require that the investor undertakes actions and you hope not to miss them.

In the past these came to your mailbox for the shares of Singapore. In a nominated account such as Standard Chartered Bank, they will send you an SMS when there is a need for business actions. Nowadays they also have a panel for business actions.

Interactive brokers send you an e -mail if there are business actions.

The most common meeting will be if dividends have been explained in shares or cash.

In this e -mail sent from Interactive Brokers Message Center, two effects of dividends announce and your broker will inform you about this.

But there are some business actions that you may have to take to choose or vote. In this example of Jardine Matheson there is a need to make a choice with regard to receiving the dividends as cash or shares.

I received this e -mail on the 9th and the period to take action is from 8 to 11th.

Not much window to work with, just like Standard Chartered Online Trading in the past.

If you click on the Portallink, you will be sent to the Interactive Brokers Corporate Action Manager:

Navigate to Interactive Makelaars Corporate Actions Manager

Suppose you don’t have the time to do it immediately and would like to visit this again, you can log in to your interactive brokers portal:

Type of the search bar at the top “Corporate”

You will be able to see it Corporate Actions Manager There and just click on it.

You can see a number of business actions with a lot of only information where you do not have to take action.

If there are some to do, click on ChoicesAnd Mandatory actions To be sure what they are.

In my case it is as if I want to receive my Jardine dividends in cash, or reinvest as dividends for shares. I will have to go into the amount of the shares between the two to make choices.

In this case this means that I can receive half as sharing dividers and half as dividends in cash.

I hope this gives you some lighting about how the brokerage deals with this aspect of your effects management.

My extensive interactive brokers How-to-guides

Interactive brokers is a very cheap, financially strong brokerage platform that can be the standard broker for keeping your long -term investments. You have access to 150 global stock exchanges, including stock markets such as Singapore, the US, Hong Kong, London, European and Canada.

You will enjoy cheap committees and zero minimal recurring platform costs or maintenance costs. Convert your funds to different currencies at near-spot rates and pays a fixed fee for US $ 2.

View my earlier articles to invest with interactive brokers to start or become familiar with interactive brokers. I hope that the guides make your life and investment experience easier and brighter.

A simple step -by -step manual for setting interactive brokers (IBKR)

How to finance and record funds of your interactive broker’s account

How to convert currency into interactive brokers

How to buy and sell shares and effects on interactive brokers

How competitive are interactive prices for brokers assignments?

How safe is it to confuse your money with interactive brokers? The things they do better than other brokers.

How safe is it to confuse your money with interactive brokers (2)? Financial strength of IB during the recent bank crisis and during a major financial crisis

Fixed versus layered prices: usually choose a layered prices when you invest in USD printed ETF on the London Stock Exchange.

Interactive brokers have eliminated the monthly inactivity costs of US $ 10. More details here.

How you can transfer your shares from standard chartered online trade to interactive brokers

How to exchange after-hours and premarket

Make custom reports and send them automatically to your e -mail

What is the portfolio analyst report and sends the portfolio analyst report automatically to your e -mail

Send money from transferwise to interactive brokers

Interactive real estate agents Liquid interest rates -income on cash

Introduction of impact by interactive brokers

Kyith is the owner and some writer behind investment canals. Readers coordinate investment canals to learn and build stronger, stronger power foundations, how to have a passive investment strategy, to know more about investing in Reit’s and the notes and bolts of active investing.

Readers also follow Kyith to learn how to plan well for financial security and financial independence.

From 2004 to 2019, Kyith worked as an IT operational engineer. He is currently working as a senior solutions specialist in insurance. All opinions about investment canals belong to him and do not represent the views on providing.

You can view Kyith’s current portfolio herethat uses his Free Google Stock Portfolio Tracker.

His favorite investment broker is Interactive brokersAs a result of which he is able to invest in the effects of various stock markets around the world, at very low commission rates, without retention, near spot currency rates.

You can read more about Kyith here.