No action needs to be taken in the event of a mandatory corporate actions alert.
TopA mandatory corporate action is an event initiated by the corporation by the board of directors that affects all shareholders, meaning shareholder participation is mandatory. An example of a mandatory corporate action is a cash dividend. All shareholders are entitled to receive the dividend payments and do not need to do anything in order to receive the dividend. Other examples of mandatory corporate actions include stock splits, mergers, and spin offs.
NOTE: The industry term "mandatory" may be confusing with regard to this alert. The shareholder is a passive beneficiary and does not need to take any action for a mandatory corporate actions alert.
TopFor more information concerning mandatory corporate actions, see the OnLine Reference (Resources > Policies and Procedures). If you still have questions, please contact your dedicated service group for further details.
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