Actions of corporations

In anticipation of the publication of a financial report or other corporate event, margin requirements on shares may increase up to five times the standard percentage. This change may be implemented 5 business days prior to the specified corporate event and maintained after the event at the discretion of AdeGroup.

Updated margin requirements for all current and new positions will apply during this period. AdeGroup clients are advised to monitor their own margin requirements for their accounts and available margin before, during and after this period. In view of the above, AdeGroup clients should be aware of and agree to the possibility of being notified of the need for additional margin (margin call) or stop-out activation of their positions.

• AdeGroup has rights to raise margin calls before dividends are paid.
• Long positions - Customers with Buy positions on the dividend date will receive the dividend accrual in the form of a cash adjustment (top-up).
• Short positions - Clients with open Sell positions on the date of dividends will be withheld the amount of dividends in the form of a monetary adjustment (write-off)

ℹ Note: Securities may be paid as dividends. The amount of the dividend is determined based on the value of the shares in order to calculate the cash equivalent (see `Share Split Adjustments`).

If a corporate event results in a stock split, the resulting fractional balance may be offset by a cash adjustment that is unrelated to the action on the underlying position. The amount of such adjustment will be determined as the product of the fractional position by the adjusted closing price of the stock on the day before the ex-date.

Since the above action does not change the market value of the company, it should correctly reflect the customers' current stock position by applying the announced stock split ratio.

• A client purchased 100 shares of AAPL Corporation at $400, currently trading at $500. The AAPL Board of Directors then declares a 2:1 stock split.
• The client's position with its 100 shares at the time of closing is neutral
• Two new positions are opened for the client in such a case, 100 shares at the time of opening were worth $200 each, and the new market value is $250
• Nothing has changed for the client as their capital share remains the same as it was before the split

Such action does not change the market value of the company, but the customers' position should be adjusted to reflect the updated share price.

• The client purchased 100 shares of AAPL Corporation at $400, which are currently trading at $500. And then AAPL management reports a 10-to-1 stock consolidation
• The client's position with its 100 shares at the time of closing is neutral
• There is 1 new position opened for the client where he has 10 shares of stock that were worth $4000 US each at the time the trade was opened and their new market value is $5000.
• For the client, the situation is the same as before the Share Consolidation, as the capital share remains the same as it was before the Share Consolidation

The outcome will be: transfer of rights in the form of collateral, execution of a CFD based on these rights or a financial adjustment.

• Although the rights issue gives the customer a chance to buy shares at a reduced value, the value of the shares will also fall because the additional circulation of the shares will dilute them.
• Actions to stop shortage shares after formal notification.