Potential Adjustment Event - Equity Derivatives Provision: Difference between revisions

601 bytes removed , 12 May 2022

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-{{eqderivanat|11.2(e)}}
+#REDIRECT [[Adjustments to Share Transactions and Share Basket Transactions - Equity Derivatives Provision]]
-Corporate adjustments that may have a diluting or concentrative effect on the theoretical value of the relevant {{eqderivprov|Shares}}.
-===Retrospective adjustments===
-Now what might happen under a [[total return swap]] if such a Potential Adjustment Event happens retrospectively, after a Transaction has been terminated (or has matured)? This does happen from time to time. For example:
-:''A total return swap transaction is traded on 1 January. It matures and is settled on 1 June. On 1 September, following an accounting error coming to light, the Issuer declares an {{eqderivprov|Extraordinary Dividend}} to all holders of record on 1 March. It pays this dividend on 1 December.

Potential Adjustment Event - Equity Derivatives Provision (view source)