What types of corporate actions can happen to US stocks on Pluang?
Corporate actions are company-initiated events that affect your shares or holdings. Pluang supports 13 types — from dividends and splits to mergers, spin-offs, and rights distributions. All are processed automatically. You can view them in the Corporate Actions section on each stock's asset page in the app.
| Corporate Action | What It Means | Effect on Your Holdings |
|---|---|---|
| Cash Dividend | Company distributes cash profits to shareholders | Cash credited automatically to your USD wallet |
| Stock Dividend | Company distributes additional shares instead of cash | Additional shares added automatically to your portfolio |
| Unit Split | A fund or ETF divides each unit into multiple units at a lower price per unit | Unit count increases; price per unit decreases; total value unchanged |
| Stock Split | Company divides each existing share into multiple shares at a lower price per share | Share count increases; price per share decreases; total value unchanged |
| Reverse Split | Company consolidates multiple shares into fewer shares at a higher price per share | Share count decreases; price per share increases; total value unchanged. Fractional shares paid as cash at the pre-split price |
| Spin-Off | Parent company separates a business unit into a new, independently listed company | You receive shares in the spun-off company proportional to your existing holdings |
| Cash Merger | Company is acquired and shareholders receive a fixed cash amount per share | Your shares are removed; cash credited to your USD wallet at the merger price |
| Stock Merger | Company is acquired and shareholders receive shares of the acquiring company | Your shares are converted into acquirer shares at the agreed exchange ratio |
| Stock + Cash Merger | Acquisition paid with a combination of acquirer shares and cash | Your shares are partially converted to acquirer shares and partially paid as cash |
| Redemption | Company or fund repurchases its shares/units at a set price | Your shares are removed from your portfolio; cash credited to your USD wallet |
| Name Change | Company changes its name and/or stock ticker | Your holdings remain unchanged; the stock displays the new name and ticker |
| Worthless Removal | Shares are removed because the company has gone bankrupt or shares have no recoverable value | Shares are removed from your portfolio |
| Rights Distribution | Company grants existing shareholders the right to purchase new shares at a discounted price | Rights are credited to your account; you can exercise them to subscribe for new shares at the set price |
Where to check: Go to the stock's asset page in the app → tap Corporate Actions.
Related questions:
Q: Do I need to take any action when a corporate action occurs?
No. All corporate actions on Pluang are processed automatically on the effective date.
Q: What happens to my average purchase price after a stock split?
Pluang automatically recalculates your average purchase price on the effective date so your cost basis remains accurate.
Q: What happens to my US stock if the company is acquired?
Your shares will be processed according to the deal terms — converted to acquirer shares, paid as cash, or a combination. Pluang handles this automatically.