Issue
The issue corporate action can be used as a tool for recording issues, i.e. situations when new securities are issued based on the ownership of another security.
The issue corporate action can be used in any kinds of issues, for example when recording subscription rights issues, i.e. when an owner of a security gets subscription rights. The issue corporate action creates as many transactions as there are open purchase lots in the position the issue is based on, and keeps track of the original purchase dates.
The issue corporate action can be recorded to the system through the Corporate action window with the following information (a star indicates a mandatory field):
- Security*
The security the issue is based on (for example the security issuing the subscription rights). The amount of this security in the portfolio together with the ratio will determine the amount of the transaction created.
- Issued security*
The issued security (the security received from the issue).
- Run based on*
An option to run a corporate action based on:
Ex-date. Define the ex-date and run the corporate action for all portfolio positions (settled and unsettled) that have transaction date on the selected date or earlier.
Record date. Define the record date and run the corporate action for settled portfolio positions that have settlement date on the selected date or earlier.
- Issue date*
(The field is shown if you choose to run the corporate action based on the ex-date). The ex-date of the issue. The issue is calculated based on the position amount (settled and unsettled) in portfolios on the morning of the specified date. The issue date will become the transaction date of the transaction created.
- Issue record date*
(The field is shown if you choose to run the corporate action based on the record date). The issue record date. The issue is calculated based on the settled position amount on the morning of the record date. This date will become the transaction date of the transaction created.
- Price / unit
The unit price of the issued security (or leave as 0 if the issue is of no charge). The unite price will become the unit price of the transaction created.
- Issue ratio
The issue ratio (for example 1:2). The ratio determines how many new securities are received per one original security (for example, if with one security you will receive two subscription rights, ratio would be 1:2).
- Transaction type*
The transaction type for the transactions to be created (if recording subscription rights issues, select "Subscription rights issue" or similar).
A new corporate action is created with the OK button below the corporate action information. Remember to run the corporate action to your portfolio(s) in order to create appropriate transactions to your portfolios.