Corporate Actions

This page is provided for informational purposes only and is subject to the disclaimers set out in Disclaimers.

What Is a Corporate Action

A corporate action is an event initiated by a company that affects its securities — such as a dividend, a stock split, a change of ticker, or a delisting — and that typically requires corresponding updates to records, valuations, or entitlements for holders.

Because each Stove token tracks a real underlying security, corporate actions affecting that security are reflected in the token. Stove processes these events so that holders' economic exposure stays aligned with the underlying.

Supported Actions

Stove currently supports the following corporate actions:

• Stock split
• Reverse split
• Dividend
• Ticker change
• Delisting

How Actions Are Handled

Stove tokens are issued in whole units only — there are no fractional tokens. Where a corporate action would otherwise result in a fractional token, that fraction cannot be held as a token and is instead settled in cash (in the settlement asset). This is the only reason a "fraction" arises; balances themselves are always whole numbers.

Stock Split — ratio adjustments, with cash for any fraction. When the underlying security splits, holders' token balances are adjusted by the split ratio. Where the ratio would produce a fractional token (for example, a 3-for-2 split applied to an odd balance), the whole-token portion is credited and the leftover fraction is settled in cash, so that economic exposure is preserved across the split.

Reverse Split — consolidation, with cash for any fraction. When the underlying undergoes a reverse split, token balances are consolidated by the applicable ratio. Where the consolidation would produce a fractional token, the whole-token portion is credited and the leftover fraction is settled in cash.

Dividend — automatic distribution, net of tax and fees. When the underlying security pays a dividend, the corresponding amount is distributed to holders automatically, on a 1:1 basis relative to their holdings.

Because the entity holding the underlying securities is subject to withholding tax on dividends from those securities, the amount distributed to holders is net of applicable withholding tax and of the costs of processing the distribution. Holders remain responsible for their own tax position; see Disclaimers.

Stove tokens are not total-return trackers. Dividends are distributed to holders rather than reinvested into the token, so a token continues to represent the same 1:1 relationship to the underlying security over time.

Ticker Change — updates ticker and factory mapping. When the underlying security changes its ticker, Stove updates the token's ticker and the corresponding factory mapping so that the token continues to track the same security without interruption to holders' exposure.

Delisting — notice, a window to exit, then automatic settlement. When a company announces that its security will be delisted, Stove notifies onboarded holders of the affected token. A processing window then follows, during which you can choose to sell or redeem your tokens in the ordinary way. At the end of that window, the system settles any remaining tokens automatically: the corresponding token is retired, the underlying position is unwound, and holders receive compensation reflecting the value realized, in accordance with the offering documents.

Transfer Lock

While a corporate action affecting a given token is being processed, that token cannot be transferred until the action has been fully applied. This prevents transfers from occurring against stale balances or entitlements, and ensures every holder of record is treated consistently when the action is resolved.

You can check whether a token is currently subject to an unprocessed corporate action on the Stove status page. (Status page link to be added.)