What is a voluntary corporate action ?
A Voluntary corporate action is where shareholders can choose whether or not to participate. Examples rights or warrant exercises. Participation is optional you decide if you want to take part in the event.
What types of corporate actions are considered voluntary?
Voluntary corporate actions typically include:
Rights Offer: This is when a company offers to sell you new shares (typically below the market price) before they offer these shares publicly.
Warrant Exercise: This is when a company offers to sell you new shares at a specific exercise price. Expirations can be up to 5 years in the future.
Is there a fee for this voluntary action ?
Yes. If you choose to exercise warrants or rights our broker partner Alpaca will process your voluntary submission with a service fee of USD 100 per action.
Why is there a $100 fee?
This fee covers the manual processing and coordination required by Alpaca to execute your voluntary corporate action election on your behalf.
Do I have to participate in voluntary actions?
No, participation is optional. If you choose not to act, your position will typically remain unchanged after the corporate action event.
How will I be notified about a voluntary action opportunity?
You’ll receive a notification from us when a voluntary corporate action becomes available.
How do I submit my election?
You can submit your decision by following the instructions provided in the notification. Once submitted, Alpaca will process your request and apply the relevant service fee.
Can I cancel my election after submission?
Once you’ve submitted your voluntary election and it’s processed by Alpaca, it typically cannot be reversed. Please review the terms carefully before submitting.
Who should I contact if I have questions?
If you have any questions about a voluntary election or the associated fee, please contact Gotrade Support via the in app Help Center or email support@heygotrade.com.