Corporate Actions

There are multiple corporate actions an organisation could undertake, but dividends payments would be the only one impacting trading in ETPs.

• Dividends

Dividend payments can have an impact on trading in ETPs as they can affect the underlying value of the assets that the ETP holds. For example, when a company declares a dividend, its stock price may decrease by the amount of the dividend, as the company is distributing some of its profits to shareholders. This can affect the value of the ETP, depending on the weighting of the stock in the underlying index or portfolio.

• Stock Splits

It’s important to note that there is no direct relationship between the price of the underlying instrument and the leveraged/inverse ETP. The ETP simply reflects the daily performance of the instrument tracked, multiplied by the leveraged factor.

Example: