What happens if my stock is affected by a corporate event (such as a delisting or merger)?
The eToro platform does not support the replacing of one stock with another. However, eToro clients affected by such corporate actions may receive compensation where appropriate.
If you hold stock positions in a company that is delisted from a stock exchange:
The stock will be removed from the eToro platform. CFD positions will be closed at the available rate traded in the OTC market at the time of liquidation, and any profit or loss incurred from these trades will be reflected in your Available balance.
Positions where you are investing in the underlying asset may remain open. If there is an OTC market, you may be able to continue managing them as you see fit.
If you hold stock positions in a company that is acquired as part of a merger:
All open positions will be closed at the merger deal price, and any profit or loss incurred from these trades will be reflected in your Available balance.
In cases where the value of the new stock is greater than the original stock, you will receive the notional amount of the acquisition terms, based on the difference between the last rate traded before the original stock's delisting and the value of the new stock. This amount will appear as a dividend in your account statement.
If you hold stock positions in the acquiring company in a merger:
The stock will continue to be offered and your positions will remain open.