1. What Are Corporate Actions

A corporate action is a significant event or decision that a listed company takes regarding its securities. It may affect the stock price, position size, ticker symbol, or cash distribution. Common corporate actions include dividends, stock splits, reverse stock splits, mergers and acquisitions, ticker symbol changes, and delisting.

BingX automatically handles all corporate actions, so you don't need to take any manual action. Once processing is complete, your positions and balance will update automatically, and you will be notified in real time through push notifications and in-site messages.

2. Supported Types of Corporate Actions

1. Cash Dividend

• A company distributes part of its profits to shareholders in cash.
• Dividends are automatically paid in USDC to your Spot Account.
• You are entitled to the dividend if you hold the stock before the ex-dividend date.
• Payment time: approximately 2-5 business days after the ex-rights date.
• May involve withholding tax (default 30% for non-US tax residents, subject to the actual amount applied).

2. Stock Dividend

• A company pays dividends to shareholders in the form of additional shares instead of cash.
• Your position size increases automatically in proportion to your existing positions.
• Fractional shares also receive the dividend on a proportional basis.

3. Forward Stock Split

• Existing shares are divided into more shares at a set ratio (for example, a 1:4 split).
• Your position size increases automatically, the price per share decreases proportionally, and the total holding value remains unchanged.
• Fractional shares are split proportionally as well.

💡 Example: If you hold 5 shares of NVDA, after a 1:10 split, they automatically become 50 shares, with each share priced at 1/10 of the original price.

4. Reverse Stock Split

• Multiple shares are consolidated into fewer shares (for example, a 4:1 reverse split).
• Your position size decreases, the price per share increases proportionally, and the total holding value remains essentially unchanged.
• After a reverse stock split, any fractional share less than 1 share is settled in cash (cash in lieu).

💡 Example: You hold 100 GME shares. After a 4:1 reverse stock split, this automatically becomes 25 shares.

5. Unit Split

• A unit (a composite security) is split into its component parts, such as common stock plus warrants.
• After the split, you will hold each component security separately.
• The new securities automatically appear in your positions.

6. Symbol Name Change

• A company changes its stock ticker symbol (for example, FB → META).
• The number of shares held and the cost price remain unchanged. Only the ticker symbol is updated.
• After the name change, the new ticker symbol is automatically used for display.

💡 Example: You hold 10 FB shares. This automatically changes to 10 META shares, and your holdings are unaffected.

7. CUSIP Change

• The security's CUSIP number changes (CUSIP is the unique identifier for U.S. securities).
• Usually triggered by corporate reorganizations, mergers, and similar events.
• This has no material impact on your positions. The ticker symbol may remain unchanged. Only the backend identifier is updated.
• The system automatically completes the switch. No action is required from you.

8. Symbol & CUSIP Change

• The stock ticker symbol and CUSIP number change at the same time.
• Usually caused by a company name change accompanied by re-registration of the security.
• The number of shares held and the cost price remain unchanged, and the ticker symbol automatically updates to the new symbol.

9. Spin-off

• A parent company lists a subsidiary or business division as an independent public company.
• You will automatically receive shares of the newly listed company on a proportional basis.
• Your original positions remain unchanged, and you additionally hold positions in the new security.

💡 Example: You hold 100 GE shares. GE spins off GEV at a 1:1 ratio, so you retain 100 GE shares and receive 100 GEV shares.

10. Cash Merger

• The acquirer purchases all shares of the target company with cash.
• Target company shares you hold will be automatically deregistered.
• Merger consideration is credited in USDC.

11. Stock Merger

• The acquirer exchanges its own stock for shares of the target company.
• Target company shares you hold will be automatically converted into the acquirer's shares according to the exchange ratio.
• New shares automatically appear in your positions after the stock swap.

12. Stock & Cash Merger

• The acquirer uses both cash and stock as merger consideration.
• You will receive both: a cash portion (credited in USDC) and a stock portion (new shares added to your positions).

13. Reorganization

• The company carries out a major structural adjustment (such as debt for equity swap or asset restructuring).
• The platform will send advance notice, and your positions may change accordingly.
• Specific handling depends on the reorganization plan.

14. Redemption

• The issuer buys back all securities under agreed conditions (common for ETNs, preferred shares, etc.).
• All positions are subject to a mandatory buyback.
• Redemption proceeds are credited in USDC.

15. Partial Call

• The issuer buys back part of the securities under agreed conditions.
• Only part of your positions is bought back, and the remaining positions continue to be held.
• Proceeds from the redeemed portion are credited in USDC.

16. Delisting Processing

Depending on the delisting circumstances, there are two handling methods:

⚠ Delisting and liquidation are high-priority events. The platform will send push notifications to make sure you're notified in time. Related unfilled pending orders will be automatically canceled.

17. Payment in Lieu of Dividends

• When dividends can't be received directly due to lending or other reasons, they're paid as a cash instead.
• The amount is equal to the dividend owed and is credited automatically.

3. Corporate Action Type Quick Reference Table

4. Key Dates Timeline

5. Trading Restrictions During the Processing Period

During corporate action execution, the relevant securities may be subject to the following restrictions:

⚠ After corporate action processing is complete and verified by the system, trading resumes automatically, and positions and balances update in sync.

6. Notification Mechanism

BingX notifies you through multiple channels at each stage of a corporate action:

Advance notification (for some events)

• Applies to: major events such as restructuring, redemption, and partial redemption.
• Timing: sent approximately 3 days before the effective date.
• Content: informs you of the upcoming corporate action and its potential impact.

Result notification (for all events)

After the corporate action is completed, the system automatically sends a notification informing you of the processing result:

Notification channels

• ✅ App push notification
• ✅ In-site notification
• 💡 You can manage notification preferences in app settings (switches for order fills, dividends, corporate actions, etc. are controlled independently). We recommend that you turn on app push sound alerts to make sure you're notified of asset changes in time.

7. How Fractional Shares Are Handled in Corporate Actions

8. FAQ

Q1: What do I need to do when a corporate action occurs?

A: No action is required. BingX automatically processes all corporate actions and notifies you of the results once processing is complete.

Q2: How long does it take for dividends to arrive?

A: Dividends are usually credited automatically within 2-5 business days after the ex-rights date, paid in USDC to your Spot Account.

Q3: Will my total position value change after a stock split or reverse split?

A: It remains essentially unchanged. After a stock split, the number of shares increases but the price per share decreases. After a reverse split, the number of shares decreases but the price per share increases. The only exception: during a reverse split, fractional shares of less than one share are cash-settled, which may cause a very small difference.

Q4: What happens if a stock I hold is acquired?

A: It's processed automatically. Cash merger → you receive the merger payment. Stock merger → your shares are automatically converted into new shares. Stock and cash merger → you receive both cash and new shares.

Q5: If a stock's ticker symbol changes, will I lose my position?

A: No. A ticker symbol rename only changes the displayed ticker symbol. Your position size, cost price, and other details remain completely unchanged, and the ticker symbol automatically switches to the new one.

Q6: Will I lose money if a stock is delisted?

A: It depends on the situation. Delisted as worthless (for example, due to company bankruptcy) means your position value goes to zero. Delisting liquidation means the platform automatically sells your shares before delisting, and you receive the proceeds.

Delisting is a high-priority event, and the platform sends push notifications to make sure you're informed in time.

Q7: Why can't I trade a stock during a corporate action?

A: To ensure position data is updated accurately, the system needs to temporarily pause trading of the affected asset during processing (trading halt protection). Trading automatically resumes once processing is complete and verification passes, which usually takes a few hours to one trading day.

Q8: Why was my pending order automatically canceled?

A: When a corporate action (such as a stock split or delisting) is executed, the system automatically cancels all unfilled pending orders for the affected asset to prevent abnormal execution caused by changes in price or share count.

You will receive a cancellation notification.

Q9: Where can I find the new ticker after a spin-off?

A: After the spin-off is complete, the new asset automatically appears in your "Stocks" → "Position" list, and you will receive a position change notification.