A corporate action is an event carried out by a listed company that can impact its structure or investment value, therefore being relevant to its shareholders. Corporate actions are typically approved by the company's board of directors, but some may require the response of shareholders, where they may be permitted to vote. The most common type of corporate action events with trading are: 
<ul>
<li>Dividend/distribution payments </li>
<li>Dividend Reinvestment Plans (DRPs)</li>
<li><a href="https://hellostake.com/blog/stake-academy/stock-split">Stock splits</a></li>
<li>Stock consolidations/Reverse stock splits</li>
<li>Unmarketable parcel share sale facility</li>
<li>Mergers and acquisitions</li>
<li>Buy-backs</li>
<li>Rights issues </li>
</ul>
Stake will handle certain corporate actions on your behalf, such as dividends and stock splits. However, when you are required to do something or take an action in respect of a corporate action, you will need to liaise directly with the applicable share registry, proxy partner, or contact the Issuer directly.  It is recommended that investors approach such opportunities with caution and perform their due diligence before making an investment decision. Investors should also seek independent financial, legal and tax advice before proceeding. Stake may use reasonable endeavours to assist you, however we do not guarantee that this will be possible in all instances. If you have any questions feel free to reach out to the customer support team <a href="https://hellostake.com/support/contact-us">here</a>.

Corporate actions explained

<h3 id="h_01HGW8H631Z0J88JP9XQYW925B">How do I receive dividends?</h3>
You’re eligible for a dividend if you own a company’s shares through its ex-divdend date (including fractional shares). The ex-dividend date of a stock is the day which the stock begins trading without the subsequent dividend value. If you purchase shares on or after the ex-dividend date, you will not be entitled to the dividend.  Any dividends you are eligible to receive will be credited into your Stake USD account, usually within 1-2 business days after the payment date. This may take longer from DTCC or Issuer processing. These payments are viewable in the ‘Transactions’ section of the app. You are eligible to receive dividends on your fractional shares on a pro-rata basis. The dividend amount will be proportional to your holding. For example, if a company pays a dividend of US$10 per share and you hold 1.34 shares in that company, your dividend will be US$13.40 (minus any applicable withholding tax).  If your fractional share pays a dividend, the dividend payable to your position must be greater than or equal to $0.01 to be credited to your account.  
<h4 id="h_01HGW8H631E5837R3RB7KV2GYG">Withholding tax</h4>
There is a 30% withholding tax on dividend payments in the U.S. This can be reduced to 15% after the completion of a W-8BEN form on U.S.-domiciled securities, which Stake arranges on your behalf when you make your first deposit on Stake Wall St. You can read more about W-8BEN forms <a href="https://hellostake.com/support/documents-and-statements/taxes-and-forms/26011219005337" target="_blank" rel="noopener noreferrer">here</a>. Some companies that pay dividends may have different withholding amounts. You can view all the relevant information by going to the app: More &gt; Funds and Balances, under Transactions. On web: Menu &gt; Funds and Balances &gt; Transactions. Please note that due to the complexities involved with tax, we recommend you obtain independent &amp; professional advice which takes into account your own set of facts and circumstances. 
<h4 id="h_01HGW8H631BD7VFSRT8CWF6AJX">Dividend Reinvestment Programs (DRIPs)</h4>
At this time, Stake doesn’t offer a dividend reinvestment program. However, thanks to fractional shares,  you can use the cash received from the dividend distribution to then manually reinvest your dividend cash payments back into the underlying stock or ETF (minimum trade size US$10). 
<h3 id="h_01HGW8H631A2RB64JHX7A7PXVS">How do I track my dividends?</h3>
You can view all dividend payments by going to More &gt; Funds and Balances, under Transactions. To only view dividend payments, use the filter and select Dividends. A record of your dividends can also be found in Account &gt; Tax &amp; Documents &gt; Account Statements. 
<h4 id="h_01HGW8H631REN9386PEQKGXF70">Dividend updates &amp; reversals</h4>
Sometimes a dividend rate is adjusted after shareholders have already been paid. This is particularly common with American Depositary Receipts (ADRs), with FX rates or changes in foreign tax rates and regulations (for example, due to a regulatory ruling).  In these circumstances, we’ll adjust your dividend payment: you’ll see a new payment that reflects the updated amount. In some extreme cases the entire dividend could be reversed, but this is rare. You can read more about dividends <a href="https://hellostake.com/blog/stake-academy/what-is-a-dividend">here</a>.

Dividend process

At this time, Stake doesn’t offer a dividend reinvestment program for U.S. stocks. However, thanks to fractional shares, you can use the cash received from the dividend distribution to then manually reinvest your dividend cash payments back into the underlying stock or ETF (minimum trade size US$10). 
<h3 id="h_01HGW8MKEH9YSGCQ6FM8H424J5">How do I track my dividends?</h3>
You can view all dividend payments by going to More &gt; Funds and Balances, under Transactions. To only view dividend payments, use the filter and select Dividends.  
A record of your dividends can also be found in Account &gt; Tax &amp; Documents &gt; Account Statements. 
<h4 id="h_01HGW8MKEHKH4ZVYCDQPFJJ2GM">Dividend updates &amp; reversals</h4>
Sometimes a dividend rate is adjusted after shareholders have already been paid. This is particularly common with American Depositary Receipts (ADRs), in relation to FX rates or changes in foreign tax rates and regulations (for example, due to a regulatory ruling).  In these circumstances, we’ll adjust your dividend payment: you’ll see a new payment that reflects the updated amount. In some extreme cases the entire dividend could be reversed, but this is rare. You can read more about dividends <a href="https://hellostake.com/blog/stake-academy/what-is-a-dividend">here.</a>

Dividend reinvestment plan (DRIP) on Wall St

<h4 id="h_01HGW8BG3Y87SEAT69CH8JWWKB">What happens when a company I own shares in undergoes a stock split?</h4>
A stock split is when a company divides existing shares of its stock into multiple new shares, which reduces the stock price while increasing liquidity. Investors will receive additional shares in proportion to their shareholdings at the time of the stock split and the ratio of the split.  For example, if you hold 100 shares of a company that announces a 4:1 stock split, your 100 shares will become 400 shares. The total value of those shares will remain the same and the company will retain its market capitalisation.  There are several reasons for a company to conduct a stock split, such as more accessibility and renewed interest as the price per share drops. You can read more about stock splits <a href="https://hellostake.com/blog/stake-academy/stock-split">here</a>.

Stock splits

<h3 id="h_01HGW84GJ282KP1AK6F1KG347J">How do I vote in a company’s annual general meeting?</h3>
Voting eligibility can vary for fractional shareholders, depending on several factors. 
<h4 id="h_01HGW84GJ2ZB7DBK9RN9FDP8KF">Record date</h4>
Since the shareholders of a stock are constantly changing, companies set a record date to determine eligibility for upcoming votes. This date is used as a cut-off point: you must have held the security as of the record date to be eligible. These dates are set by the company and are not determined by Stake or our broker-dealer.  
<h4 id="h_01HGW84GJ2DPYBRDY62323FNM7">Fractional Vote Value</h4>
While you may be invited to vote as a fractional shareholder, the company ultimately decides what value these votes have. Some companies choose to discard votes on fractionals and others may adjust the vote value. These decisions are set by each company and not determined by Stake or our broker-dealer. Please note that some companies choose to discard votes on fractionals and others may adjust the vote value. These decisions are set by each company and not determined by Stake or our broker-dealer. If eligible, you’ll receive an email from Stake via Broadridge informing you about an upcoming vote along with proposals and instructions. Just follow the link in the email from "id@proxyvote.com" to have your say.

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Corporate actions explained