Corporate actions

Portfelj supports a number of corporate actions. When corporate action occurs, the program handles it accordingly and registers the event with explanation under position events in the ledger.

Currently, if corporate action is not supported, the program prints a warning in console. The long term goal is to cover all corporate actions.

Vocabulary

• Corporate action - any action taken by the company that has a material impact on the company and its shareholders. Corporate actions involve either changing a company's name/brand, mergers, acquisitions, spinoffs, or issuing dividends.
• ISIN – stands for International Securities Identification Number, it's a 12-digit alphanumeric code that uniquely identifies a specific security.
• Contract ID - an identifier used by Interactive Brokers that uniquely identifies a certain security or contract.

Supported corporate actions

Summary

Corporate action
Issue change (IC)	✅
Merger (TC)	✅
Reverse split (RS)	✅
Forward split (FS)	✅
Spin-off (SO)	✅
T-bill maturity (TM)	✅
Subscribable rights issue (RI)	❌
Delist worthless (DW)	❌

Corporate action descriptions

• Issue change (IC)

  Security change in ISIN, contract ID, and/or company name.

• Merger (TC)

  Company mergers and acquisitions.

  Certain kinds of such corporate actions have been observed and handled:

  • Mergers that are effectively issue change. This can happen with restricted shares after a holding period.
  • Mergers that result into share distribution of ABC at a certain proportion to the stockholder holdings in XYZ.
  • Mergers that are cash buyouts and involve sale of security in exchange for cash.

• Reverse split (RS)

  Consolidation of the number of existing shares into fewer. Decreases the number of shares, proportionally increases the share price.

  Left over shares, typically a fraction (less than one share), may occur in reverse splits and recognized as such under security events in the program output. When that happens, the brokerage exchanges the left over shares for cash.

• Forward split (FS)

  Issuance of additional number of shares to the shareholders. Increases the number of shares, proportionally decreases the share price.

• Spin-off (SO)

  Company ABC moves a part of business into independent entity XYZ, distributing shares of XYZ at a certain proportion to the stockholder holdings in ABC.

• T-bill maturity (TM)

  T-bill position is exchanged for cash at face value.

• Subscribable rights issue (RI)

  Not implemented yet. TBD

• Delist worthless (DW)

  Not implemented yet. TBD