Voluntary corporate actionsBelow, you'll find more information about voluntary event types and things to consider if you'd like to participate. |
Voluntary events
Usually, a voluntary event involves an offer extended to you for a company you own shares in. Most commonly, offers range from buying or selling shares at a specific price to exchanging something you own for something new.
Why isn't there a mandatory corporate actions page?
Because there's no decision for you to make with a mandatory event, we're focused on helping you navigate the voluntary corporate actions process first. We plan to add more information about mandatory events in the future.
Things to consider before participating in a voluntary event
Only you can decide whether or not you should participate, but the information on this page may help you make a more informed decision. Everyone's investments are different, so take into account your individual financial goals and tax implications when making your choice. If you need additional advice and guidance, consult your tax and financial professionals.
Begin by reading the offer carefully, then look at each account that you hold a position in.
Some other things that may influence your decision include:
- Current market price. Compare what you're being offered to what you could trade your stock for on the open market.
- Fees. Check to see what, if any, fees apply.
- Cancellation policy. Be sure you understand whether or not you have the option to cancel your participation before the withdrawal date. In some cases, once you commit, you can't cancel.
Common voluntary events
Tender offers
Purchase offer: Tender offers can take different forms. For example, companies may want to purchase your shares at a specific price, or they may ask you choose an amount within a range of prices that you’d be willing to sell your shares for (referred to as a Dutch Auction).
Exchange offer: These offers are usually to exchange the shares you own for a new type of in-kind share, usually involving bonds or fixed income securities.
Consent request: A request for a bondholder’s permission to change the bond agreement. The company may usually offer to compensate you for your consent.
Rights offer: An offer to current shareholders to purchase new shares that are typically below the market price before the company offers them publicly. Transferable rights may have a market value and trade publicly. Nontransferable rights do not trade. Normally, investors must exercise or sell their rights within a short period of time, usually 2-4 weeks.
