Overview
Learn how corporate actions work in the US Market, including how events can affect your holdings and what happens to your shares when a corporate action takes place.
Corporate Actions: Splits, Mergers
Corporate actions like stock splits, mergers, Can affect your holdings in different ways. This table explains how each type is processed on the US market.
Split, mergers.
Type | Details |
Split | Share splits are handled as they occur; accounts update at the start of the day, shown as a "SPLIT" activity entry. Reverse-split fractional shares that can't be divided become cash once payment is received from DTC. |
Mergers | Acquisitions and similar events are processed manually in our back office, as each case is rare and unique. Stock mergers are usually paid out on the effective date; cash payments wait until Alpaca receives funds from DTC. |
Name changes / delisting & OTC stocks
Name Changes
When a company changes its name, your ownership of the stock remains unchanged.
Your shares remain in your portfolio.
The company’s name and, if applicable, ticker symbol are updated to the new details.
You do not need to sell or rebuy your shares.
A name change by itself does not change the number of shares you own.
Example:
If you own 100 shares of ABC Inc. and the company changes its name to XYZ Inc., you will still own 100 shares, but the position will be updated to reflect the new company name and ticker, if changed.
Delisting
A delisting happens when a stock is removed from the exchange where it is traded, such as Nasdaq or NYSE.
Your shares do not automatically disappear when a stock is delisted.
Depending on the reason for the delisting, the stock may continue trading on another market, such as an OTC market.
If the stock is no longer supported by Thndr or its brokerage/custody setup, trading may no longer be available through Thndr.
If the company goes through bankruptcy or liquidation, the shares may lose some or all of their value.
Important: The impact of a delisting depends on the specific corporate action and the reason for the delisting.
OTC stocks
Active OTC positions will not be automatically removed or liquidated from your account. You can submit an offline order request if you wants to close these positions.
You can also follow the corporate action updates through this website.
Capital Increase in the US stock market
Warrant Distribution and Exercise
Warrants are a type of corporate action that can be automatically distributed to eligible shareholders. This article covers how warrant distribution works, the process for exercising a warrant, and the fees involved.
Eligibility and distribution timeline
1. Eligibility for warrant distribution
Warrants are typically distributed automatically to shareholders who hold shares on the record date. The warrants then appear in accounts on the payable date.
2. Key dates to know
Record date | the last day to be a shareholder of record and remain eligible for the distribution |
Payable date | the date on which warrants are automatically distributed to eligible accounts |
Warrant exercise process
Currently, The only way to exercise a warrant is to contact us through chat and we will submit an email request to Alpaca.
Cash exercise only: We only support cash exercises. This means you'll need sufficient funds available in your account to cover the exercise price before submitting your request.
Fees and minimums
Any early exercise of a warrant is considered a voluntary corporate action and is subject to a $100 voluntary corporate action fee.
We require confirmation of the quantity being requested in whole shares only — fractional exercises aren't supported.
It may be more cost-effective to sell your warrants on the secondary market rather than exercise them, since the fee could significantly reduce your net proceeds.