MFM Securities

Corporate Actions

Margin requirements for shares, with an upcoming earnings report and/or corporate and/or other action (collectively, the ‘corporate event’), may increase up to no more than 5 times the normal percentage, 5 business days prior to the corporate event, and may remain in effect after the corporate event at MFM Securities sole discretion.

During the affected period, new margin requirements will apply for all existing and new trades. MFM Securities clients remain fully responsible for monitoring both the required margin of their account(s) and free margin prior, during and post the affected period. As a result of the above, MFM Securities clients understand and accept that this may result in their account(s) incurring a margin call and/or stop out.

Dividends

MFM Securities reserves the right to increase margin requirements prior to the release of a dividend.

Long Positions – Clients holding long positions on the ex-div date will receive a dividend in the form of a cash adjustment (deposit).

Short Positions – Clients holding short positions on the ex-div date will be charged the dividend amount in the form of a cash adjustment (withdrawal)

ℹ Note: Stock may be offered as a dividend, the dividend amount should be calculated using the share price to determine the cash adjustment (see fractional share adjustments).

Fractional Share Adjustments

In the event the corporate action results in a fractional position, the fractional component may be represented as a cash adjustment independent of the handling for the non-fractional position. The adjustment value will equal the fractional position times the adjusted closing price on the day prior to the ex-date.

Stock Split

Normal Stock Split

As there is no impact on the company’s market capitalisation the action carried out is to reflect the clients existing share position using the split ratio announced.

Examples:

The client bought 100 shares in AAPL at $400, currently trading at $500. AAPL announce a 2-for-1 Stock Split

Client's 100 share position is closed flat

2 New positions are opened for the client, 100 shares each opened at $200, the new market price is $250

The client is not affected as equity remains the same as before the Stock split

Reverse Stock Split

Again there is no impact on the company’s market cap and the clients positions need to be amended to reflect the new share price.

Examples:

The client bought 100 shares in AAPL at $400, currently trading at $500. AAPL announce a 1-for-10 Stock Split

Client's 100 share position is closed flat

1 new position is opened for the client, 10 shares opened at $4000, the new market price is $5000

The client is not affected as equity remains the same as before the Stock split

Rights Issue

Results in one of the following: Delivery of right security, issuance of CFD on the right or cash adjustment.​

Examples:

Through a rights issue will give the client an option of purchasing the share at a discounted price, the share price will be reduced also as the additional share will dilute the share value

Action to prevent shorting of share after the announcement

You can access both of our platforms from a single MFM Securites account.

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You can access both of our platforms from a single MFM Securites account.

Start Trading in 4 Steps

Verify

 

Upload your documents to verify your account

Trade

 

Start trading on more than 1000 instruments

Fund

 Make a deposit

Register

 

Open your live

trading account

via MFM Securities

Payments methods vary depending on selected jurisdiction and country of residence.
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MFM Securities (25263 BC 2019).  All rights reserved.

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Trading forex/CFD’s on margin carries a high level of risk and may not be suitable for all investors as you could sustain losses in excess of deposits. Leverage can work against you. Be aware and fully understand all risks associated with the market and trading. MFM Securities does not offer its services to the residents of certain jurisdictions such as Afghanistan, Cote d’Ivoire, Cuba, Iran, Libya, Myanmar, North Korea, Sudan, Puerto Rico, USA, Canada, Australia, Syria, Japan, and Ecuador.

International Broker Company MFM Securities with the registration number 25263 BC 2019. 


Suit 305, Griffith Corporate Centre, P.O Box 1510, Beachmont, Kingstown,

St. Vincent and the Grenadines, an International Broker Company with the registration number 25263 BC 2019. 

The objects of the Company are all subject matters not forbidden by International Business Companies (Amendment and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines, 2009, in particular, but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well as to provide brokerage, training and managed account services in currencies, commodities, indexes, CFDs and leveraged financial instruments.