What happens in the event of corporate actions in the wikifolio?
Corporate actions refer to capital altering measures such as dividends, stock splits, spin-offs, knock-outs, expirations and delistings. All corporate actions are automatically posted in the wikifolio and reported in the account statement. In the event of a corporate action, wikifolio traders receive a notification to the email address recorded on wikifolio.com.
If notional stock holdings are held in a wikifolio beyond a dividend record date, the corresponding virtual dividend income is generally taken into account in the wikifolio on the execution day.
In the case of European standard titles in euros, a cash dividend is currently generally considered in euros with its full dividend amount (100 percent of the dividend entitlement) as an increase in virtual cash stock in the wikifolio virtual portfolio.
In the case of german stocks, as of January 29th, 2017, due to a change in the law in Germany, a deduction of 15% is made on the dividend entitlement from a cash dividend.
In the case of US stocks, a virtual "dividend income" will not be considered until further notice. Due to a US law nouveau on January 1, 2017, transferring dividends from US shares into the derivative would result in a mechanism that has not been clarified to date.
In the case of other stock titles and in particular due to differing tax regulations, a deduction of up to 25% can generally be made on the dividend entitlement from a cash dividend.
A stock split is the conversion of existing stock into a larger number of new stocks with a lower nominal value. The new stock will be booked in the wikifolio as a capital increase. In the case of a re-split, the booking is made in the reverse direction. In this case, a consolidation of stocks that leads to a smaller stock but greater nominal value takes place.
Spin-offs, knock-outs, expirations and delistings
In the case of spin-offs, knock-outs, expirations and delistings, positions with a corresponding equivalent are derecognized from the wikifolios. Depending on the type of corporate action, the position is derecognized in whole or in part. The equivalent value is credited to your wikifolio as cash credit entry.