Corporate Events and Actions. 40.1. In the case where an Instrument becomes subject to a corporate event as set out below (sub-clause 40.2), the Company will carry out the appropriate actions to adjust your trading account for the effect of the event on your position, preserving the economic equivalent of the rights and obligations attached to your Transaction and/or Contract with the Company, on the ex-date of the event (i.e., the day the affected instrument’s price will incorporate the effect of the event). Subject to this sub-clause, the Company shall take the following actions:
(a) Adjust the size and/or value and/or number of Orders as deemed appropriate, with the aim to preserve, to the greatest extent possible, the economic equivalent of your open positions;
(b) Endeavour to communicate the upcoming events and actions through any durable medium, including but not limited to the Company’s website;
(c) Where you have a Pending Order or a Stop Loss and/or a Take Profit attached to your Orders, the Company aims to preserve, to the greatest extent possible, the equivalent of the rights and obligations of your Transaction and/or Contract immediately prior to the corporate event taking place;
(d) If a corporate event, such as a reverse stock split, results in share ownership below the minimum allowed by our systems, these positions will be rounded down to the nearest allowed trade size, with any value not captured by the position adjustment being reflected as a cash adjustment to your trading account. Different actions may be followed by the Company in case you owned the underlying Instrument; however, the Company will endeavor to preserve economic equivalence to the greatest extent possible.
40.2. Subject to sub-clause 40.1, corporate events shall include the following:
(a) Distribution, by the issuer to the shareholders of the Underlying Instrument, of additional shares, other share capital, warrants or rights granting dividends that result in a dilutive effect on the market value;
(b) Stock splits and reverse stock splits that result in a change in the number of shares owned and the share price. A split is a corporate event whereby a firm multiplies the number of existing shares by a certain ratio, e.g. 1:2 (this indicates that every existing share will translate into two shares). In the 1:2 case, the shareholders’ shares will double, but given the firm’s market capitalization will remain unchanged, the stock price will halve, maintaining economic equivalence; It should be noted tha...
Corporate Events and Actions. 40.1 In the event that an Instrument becomes subject to a corporate event as described below (sub-clause 40.2), the Company shall take appropriate steps to adjust your trading account for the effect of the event on your position, while maintaining an economic equivalent of the rights and obligations attached to your Transaction and/or Contract with the Company on the ex-date of the event (i.e., on the ex-date of the event). The Company shall take the following actions subject to this sub-clause:
(a) Adjust, as deemed appropriate, the size and/or value and/or number of orders with a view to maintaining, to the greatest extent possible, the economic equivalence of your open positions;
(b) Pursue the communication of upcoming events and actions through any durable medium, including, but not limited to, the website of the Company;
(c) The Company aims to preserve, to the maximum extent possible, the equivalent of the rights and obligations of your Transaction and/or Contract immediately before the corporate event takes place if you have a Pending Order or a Stop Loss and/or Take Profit attached to your Orders;
(d) If a corporate event, such as a reverse stock split, results in share ownership below the minimum permitted by our systems, these positions will be rounded down to the nearest permitted trade size, with any value not captured as a cash adjustment to your trading account being reflected by the position adjustment. If you own the underlying instrument, different actions may be followed by the Company; however, the Company will try to preserve economic equivalence to the greatest extent possible.
40.2 Subject to sub-statement 40.1, corporate occasions will incorporate the accompanying:
(a) Distribution, by the guarantor to the investors of the basic Instrument, of extra offers, other offer capital, warrants or rights giving profits that bring about a dilution impact available worth;
(b) Stock parts and converse stock parts that bring about an adjustment in the quantity of offers claimed and the offer cost. A split is a corporate occasion whereby a firm duplicates the quantity of existing offers by a specific proportion, for example 1:2 (this demonstrates each current offer will convert into two offers). In the 1:2 case, the investors' offers will twofold, however given the company's market capitalization will stay unaltered, the stock cost will divide, keeping up monetary comparability;
(c) Dividends; in the event that where a basic Instrument is giving...
