Corporate Actions

• How will I receive my Corporate Action Entitlements and where can I view them?

  As a stockholder, you are entitled to Corporate Action entitlements that includes Cash Dividends, Stocks, Stock Splits, Mergers and Acquisitions, Rights Issues, Spin Off and Bonus Shares declared by the companies you hold a position in. These Corporate Actions will be directly executed to your Brokerage account within 2-3 business days.
  
  

  How can I view the Corporate Action payout record?

  You will be able to review dividend payout details in your Brokerage transactions history and monthly statements.

  
  When will I receive my dividends?

  Fractional shares pay proportionate dividends i.e., fractional shares positions are eligible to receive dividends in the same manner as your full positions on the same stocks. 
  Under normal circumstances, the dividend amount less any applicable withholding taxes will be credited to your account buying power within 1-2 working days after the corporate action payment date. Click here for more information regarding taxes and deductions applicable to your dividends.
  

  Note: Foreign companies listed on the US, Singapore and Hong Kong exchanges may be subjected to further taxation. Brokers will only disburse dividends once the relevant taxes have been settled and this may result in receipt of dividends 2–4 working days after the declared corporate action date.
  

  
  
  
  
  

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• What happens to my holdings in the event of a stock split or reverse stock split?

  What is a stock split?

  A stock split is a corporate action where the company issues additional shares to its shareholders. It multiplies the number of shares owned by the shareholder by a specified ratio as determined by the company.

  A stock split doesn’t change a company’s market capitalisation, but it helps to lower the price of each individual share. The main benefit is making shares more accessible to a wider pool of investors.

  For example, Company X announced a 5-for-1 stock split where the record date and effective date of the split were set for 10 May and 20 May, respectively. This means, if an investor holds shares of Company X by 10 May, he is eligible for the stock split and his holdings will be updated after the effective date on 20 May.

  • If the investor owned 100 Company X shares initially, he'd receive 500 shares after the split. 
  • If each share was worth $200 at first, the post-split stock price would be $40 per share ($200 / 5 = $40). 

  As you can see, the investment value is not diluted by a stock split. The total investment value remains at $20,000 before and after the split.

   

  A reverse stock split, on the contrary, reduces the number of shares owned by a shareholder by a specified ratio as determined by the company, which raises the price-per-share simultaneously.

  For example, in a 1-for-10 reverse stock split, an investor who owns 100 shares before the reverse stock split will own 10 shares after the reverse stock split. The price of each share after the reverse stock split will be increased proportionally as well - in this case 10 times the initial share price before the reverse stock split, assuming zero market movements.

   

  What happens to my holdings in Syfe Brokerage in the event of a stock split or reverse stock split?

  After the effective date of the stock split or reverse stock split, the number of shares you hold in your Syfe Brokerage account will be adjusted accordingly. This adjustment will be reflected in your monthly statement.

  Please note that you may not be able to trade the affected share while these adjustments due to such corporate actions are made.

  Trading on a split-adjusted basis (using the adjusted share prices after the split) will begin after the effective date.

   

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• If I own fractional shares, will I be able to vote and participate in voluntary corporate actions?

  If a shareholder holds fractional shares of a security as of the security’s record date, regardless of how many shares they own, the shareholder is eligible to participate in voluntary corporate actions and vote their proxy ahead of the upcoming meeting and their experience is identical to that of full share position holders.

  In voting, the fractional position voted is added to the aggregate vote total for the security before sending the aggregate vote record to the company’s tabulator. Each tabulator may follow differing policies for counting fractional share positions, and therefore it is possible that a tabulator may follow certain rounding practices or discard fractional amounts in certain circumstances.

  You may receive an email notification to submit your response on voluntary corporate actions or voting rights from syfe@saytechnologies.com.

   

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• Will I receive fractional shares/odd lots from a corporate action?

  Yes, if a U.S. corporate action issues fractional shares, the fractional shares will be credited to your Brokerage account within 2-3 business days.
  
  For SGX, any corporate action resulting in the issuance of odd lots will also be credited to your Brokerage account within 2-3 business day. Should you require any assistance to liquidate your SGX odd lots, please reach out to our Customer Support Team as support.sg@syfe.com.

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• What is withholding tax? Do I have to pay tax on dividends received on US securities?

  Yes, US tax law requires the withholding of tax for non-US persons (non-resident aliens) at a rate of 30% on payments of US source stock dividends, short-term capital gain distributions and substitute payments in lieu.

  Consequently, all dividends of US-listed securities are subject to a 30% dividend withholding tax which will be deducted accordingly from your Brokerage account buying power after the dividends have been credited.

  You can find dividend payment details, including any withholding tax deductions, in your monthly statements as well as Syfe Brokerage app (Account > My funds > Transfer history).

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• Do I get to attend the Shareholders' Meeting (e.g. AGM, EGM) of the companies that I invest in?

  You have the right to attend shareholders’ meetings of the companies you invest in. We will notify you about any such events via email. 

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• My limit order price gets reduced after ex-dividend date, why?

  If you have placed a Good Till Cancelled (GTC) limit order for a particular security, please note that your limit order price may be reduced if the security distributes dividends. The reduction typically happens on the dividend ex-date.

  This is because when dividends are paid to shareholders, the company is no longer holding that cash. Therefore, the value of the company should drop by the amount of the dividend paid. Subsequently, any pending GTC limit orders for the particular security will also be reduced accordingly.

  For example:

  A customer placed a GTC limit order to purchase 100 units of Stock A at $50 per share. Stock A's market closing price was $55 on the day prior to the ex-dividend date. 

  Assuming Stock A pays a $1 quarterly dividend per share, on the ex-dividend date, the price of the stock falls by $1 as this amount now no longer belongs to the company. 

  Thus, the opening price of Stock A on the ex-dividend date is $54 ($55 - $1), assuming there is no other factor affecting the stock's price. The GTC limit order placed by the customer is also adjusted to $49 ($50 - $1).

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