Delivery of Notices and Corporate Action Deadlines
Chapters in this video
- 0:00 Street name and the beneficial owner problem
- 0:58 Proxy material forwarding rule and the "promptly" trap
- 2:13 Tender offer minimum: 20 business days vs calendar days
- 3:31 Rights offerings: three choices before expiration
- 4:55 Record date versus ex-date under T+1 settlement
- 6:21 Rapid-fire exam recap
What this video covers
- Why broker-dealers (BDs), not issuers, must forward proxy materials and corporate communications when securities are held in street name
- The difference between 20 business days and 20 calendar days for tender offer minimums, and why the exam tests this distinction repeatedly
- Whether shareholders can withdraw tendered shares before the expiration deadline, and under what circumstances
- What happens to rights that expire unexercised or unsold, and why the 30-to-60-day window creates a hard use-it-or-lose-it decision
- How the record date determines dividend and rights eligibility, and who actually appears on the issuer's books
- Why the ex-date falls on the same day as the record date under T+1 settlement, and how this causes buyers on or after the ex-date to miss the dividend
- The specific meaning of "promptly" in the proxy material forwarding rule, and why "upon request" or "when convenient" are incorrect answer choices
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