Subscription
The subscription corporate action can be used as a tool for recording subscriptions, i.e. situations when new securities are subscribed based on the ownership of another security.
The subscription corporate action can be used in any kinds of subscriptions, for example for recording subscriptions of a security based on the ownership of subscription rights to that security. The subscription corporate action creates one transaction per portfolio, calculates the amount for the transactions from the ratio and the position of the chosen security in the portfolio, and uses the unit price defined in the corporate action as the unit price in calculating the trade amount of the created transaction.
The subscription 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 subscription is based on (for example the subscription right security). The amount of this security in the portfolio together with the ratio will determine the amount of the transaction created.
- Issued security*
The subscribed security (the security received from the subscription).
- 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.
- Subscription date*
(The field is shown if you choose to run the corporate action based on the ex-date). The ex-date of the subscription. The subscription is calculated based on the position amount of the security bearing subscription rights in portfolios (settled and unsettled) on the morning of the specified date (i.e. the position after the previous day's transactions). The subscription date will become the transaction date of the transaction created.
- Subscription record date*
(The field is shown if you choose to run the corporate action based on the record date). The subscription record date. The subscription is calculated based on the settled position amount of the security bearing subscription rights on the morning of the record date. This date will become the transaction date of the transaction created.
- Unit price
The unit price of the subscription. The unite price will become the unit price of the transaction created.
- Issue ratio
The subscription ratio (for example 1:2). The ratio determines how many new securities are received with one original security (for example, if with one subscription right you will receive two original securities, ratio would be 1:2).
- Transaction type*
The transaction type for the transactions to be created (if recording subscriptions, select "Subscription" 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.