Information regarding corporate actions (i) is compiled by IB on a best efforts basis from information IB received from third party vendors; (ii) may contain errors or omissions; and (iii) is subject to change without prior or additional notice. IB does not warrant that the information provided is accurate, timely, or complete. Corporate action information is intended for only IB Clients, and it does not constitute a recommendation or advice by IB, and IB Clients may not rely upon it. IB Clients are urged to verify the information prior to using it in their investing and trading decisions, including through reference to independent financial news resources.
IBKR does not automatically adjust existing orders after the ex-dividend date on stocks which have declared an ordinary dividend. On the other hand, IBKR will automatically cancel existing orders when the following conditions have been met:
Generally speaking, it is the client's responsibility to be aware of pending corporate actions and how such events will affect their outstanding orders and portfolio.
Average trade prices may be susceptible to reporting error on the Trader Workstation, particularly in situations where a corporate action or position transfer takes place. While this information is intended for advisory purposes only and such errors have no impact upon the account equity or any ultimate tax obligation of the account holder, this information is adjustable by the account holder. To adjust the average cost of a particular security, open the Account Window within the Trader Workstation and scroll down to the Portfolio section. Select the asset in question from the Portfolio section and right click on it to display the drop-down window and the Adjust Average Price menu option. Enter the desired average price into the dialog box and click OK to update the Trader Workstation view.
Key dates relating to stock dividends are as follows:
1. Declaration Date - date at which company's board of directors approves dividend payment and designates the Payment Date and Record Date.
2. Record Date - the date which determines which stockholders are entitled to receive the dividend payment. You need to own the shares as of the close of the Record Date in order to receive the dividend.
3. Ex-Dividend Date - the date on or after which the stock will be traded without the right to receive the dividend. Because most stock trades in the US settle regular way; that is, two business days after the trade, an individual must purchase the stock two business days before the Record Date to qualify for the dividend. The Ex-Dividend Date is therefore one business day before the Record Date.
4. Payment Date - the date on which the declared dividend is paid to all stockholders owning shares on the record date.
* Please note these key dates may be different for special dividends. Please reference KB 3043 for information regarding special dividends.
Information relating to tax obligations is reported as required to the tax authorities within your country of residence as well as other countries if trading products subject to any local withholding requirements. Unless specifically directed by a taxing authority, IBKR does not withhold taxes on proceeds from security sales. We are required by US tax law, for example, to withhold US taxes on dividends paid by US corporations to foreign persons at a rate of 30%. This rate may be lower if the US has entered into a tax treaty with your country. In addition, investment interest income is not subject to US withholding. All withholdings for non-US persons and most entities will be reported on Form 1042-S at the close of each year. For further information refer to IRS publication 901 and/or your tax advisor.