Entitlements and Allocations



About Entitlements/Allocations


Distribution Events Entitled Positions


Interim Accounting


Allocations

Fractions resulting from stock distributions are either dropped, rounded up, or paid as cash (cash-in-lieu). DTC makes every effort to obtain rounded shares or cash-in-lieu to the beneficial owner level. In instances where the agent or issuer agrees to round fractional shares or cash in lieu at the beneficial owner level, participants have the ability via CA Web to enter the number of round-up shares required for round-up situations, or the number of shares to be liquidated for cash-in-lieu situations.

Note: Cash-in-lieu and round up shares are distributed in the following ways:

  • Cash-in-lieu at the DTC participant level: upon receipt of the cash-in-lieu price but no earlier than the payable date +1.
  • Cash-in-lieu at the beneficial owner (the DTC participant’s customer) level: upon DTC's receipt of the funds from the paying agent but no earlier than payable date +1.
  • Round up shares at the DTC participant level: upon allocation date.
  • Round up shares at the beneficial owner (the DTC participant’s customer) level: upon DTC's receipt of the additional round up shares from the paying agent but no earlier than the allocation date.