How to elect Corporate Actions
Conveniently view and submit Corporate Action elections with J.P. Morgan Online℠ or the J.P. Morgan Mobile® app.¹
Here’s how to get started:
- Sign in to JPMorganOnline.com
- On the Accounts page, under the Overview tab, select “Action center”
- Note: This is located in the “Connect with J.P. Morgan Online” tile beside “Open actions”
- Select a “Task” from the list of available events
- Start the process by selecting “Complete Now”
- Review the offer terms and documentations and select “Next”
- The possible options are shown in View Election Options
- Select “Next” to Elect Shares
- Select the “Quick Election” drop-down to elect and click to Edit the number of shares if not electing for the entire share amount
- Note: Where applicable, Beneficial Owner information is required
- For stock cash option / future dividend events, you can select “Standing Instructions” to complete and submit your choice for these future events
- You can select “Clear” or “Back” to start over or go back to review your choices or select ‘’Next’’ to continue
- Review your elections
- Select “Submit”
- All submitted completed corporate actions can be reviewed by selecting “Statements & documents” tab and selecting Shareholder Materials
- For any shares not elected by the deadline the default option as determined by the Issuer will be applied.
- Sign in to the J.P. Morgan Mobile app
- On the top of the homepage, tap on the “Action Required” module
- Note: You can also find the “Action Center” on the tile on the bottom of the homepage
- Select a “Task” from the list of available events
- Start the process by selecting “Complete Now”
- Review the offer terms and documentation and select “Next”
- The possible options are shown in View Election Options
- Select “Next” to Elect Shares
- Select the “Quick Election” drop-down to elect your option choice and click to Edit the number of shares if not electing for the entire share amount
- Note: Where applicable, Beneficial Owner information is required
- For stock cash option / future dividend events, you can select “Standing Instructions” to complete and submit your choice for these future events
- You can select “Clear” or “Back” to start over or go back to review your choices or select ‘’Next’’ to continue
- Review your elections
- Select “Submit”
- All submitted completed corporate actions can be reviewed by selecting “Statements & documents” tab and selecting Shareholder Materials
- For any shares not elected by the deadline the default option as determined by the Issuer will be applied.
Voluntary events
- Bankruptcy: A legal process in which a company is declared unable to meet its debt obligations, often resulting in asset liquidation or restructuring under court supervision. A creditor may have a decision to make, and the exact options will depend on the company’s bankruptcy plan and what the court has approved. Not all options may be available in every case, and the value received can often be less than the original investment due to the company’s financial hardships.
- Certification Required: A non-US beneficial owner certification (TEFRA - D) requirement for exchange of temporary to permanent notes. Failure to provide proper certification can result in the inability to trade or transact the position and may impact the payment of interest and or maturity proceeds.
- Consent: When a company asks its shareholders or bondholders for permission to make a change to the current security. Instead of holding a formal meeting, the company solicits a request for a consent. If you agree, you might receive a payment fee. If you do not consent, possible outcomes include: the original terms remain; no payment fee received; possible changes anyway; no change if not enough consent was reached.
- Conversion Voluntary: A voluntary conversion of securities provides the holder to convert a security into another form of securities at a stated price or ratio. A response is required from the holder for the conversion to take place. If you do not participate, nothing changes and you retain the current security.
- Disclosure: A request from the agent or issuer to disclose beneficial holder level information. Possible outcomes of not disclosing your information could be; not able to participate; default may apply and may be different from expected outcome; no changes and your investment remains the same.
- Dutch Auction: An offer to purchase shares from shareholders where specified price range is given. Holders may sell their shares stating a price within the price range provided of which they are willing to sell their shares. The company will determine a price and purchases the shares from shareholders who agreed to sell at the acceptance price or lower. If you do not participate, nothing changes and you retain the current security.
- Exchange Voluntary: Like a conversion, a voluntary exchange of securities provides the holder to exchange a security into another form of securities at a stated price or ratio. A response is required from the holder for the conversion to take place. If you do not participate, nothing changes and you retain the current security.
- Information: A general communication from the issuer to shareholders, providing updates, details or company status. These event types are generally do not require any action by the holder; however additional resources are typically provided if any action is available to be taken.
- Merger Voluntary: A merger voluntary corporate action occurs when two or more companies decide to merge and combine assets. If you own shares in one of these companies, you are given options about what to do with your shares. For example, you might be able to exchange your current shares for shares in the new, merged company; receive cash for your shares or choose another option offered as part of the merger. If you do not participate, then the default option may apply.
- Odd Lot Tender: An offer to purchase 99 shares or less from shareholders. Issuers are generally seeking to reduce the number of small accounts to simplify their shareholder base and to further assist in making the sale of non odd lots easier for shareholders. If you do not participate, nothing changes and you retain the current odd lot shares.
- Offer To Buy: An offer where a company gives shareholders the option to sell their shares back to the company for reasons such as reducing the amount of outstanding shares or returning capital. If you do not participate, nothing changes and you retain the current shares.
- Optional Dividend: Shareholders are given the option to reinvest their dividends into additional shares of the company rather than receiving cash. If you do not make an election the company default option for the dividend will be applied.
- Put Voluntary: A voluntary put is when a company gives investors the option to sell (or “put”) their securities—such as bonds or shares—back to the company at a set price, during a specific period of time. If you do not participate, nothing changes and you retain the current security.
- Rights Subscription: Privilege granted to existing shareholders of a company to subscribe to shares of a new issue against payment typically before securities are offered to the general public. Rights are often tradable in a secondary market.
- Spin-off Voluntary: A distribution of subsidiary stock to the shareholders of the parent company without a surrender of shares or payment. Spin-off represents a form of divestiture resulting in an independent company. Shareholders may be given the option to determine the securities or alternative cash payment to be received. If you do not make an election, the company default option for the spin off will be applied.
- Stock / Cash Option: Distribution of a dividend to shareholder with the choice of payment method. The shareholder has the option to choose the form of payment e.g. stock, cash, or both. If you do not make an election the company default option for the payment will be applied.
- Tender Offer: An offer where a company or a third party offers to buy shares from shareholders at a stated price with terms and conditions. The general purpose of the tender offer is to acquire a significant number of shares for control or investment purposes. If you do not participate, nothing changes and you retain the current security.
- Warrants Exercise: Option offered to holders to buy (call warrant) or to sell (put warrant) a specific amount of stock, cash, or commodity, at a predetermined price, during a predetermined period of time, which usually corresponds to the life of the issue.
Frequently Asked Questions
You should directly contact the issuer with any questions related to election options. Your J.P. Morgan team can’t provide advice on election options.
Certain corporate action events require clients to have a certain status, e.g., a Qualified Institutional Buyer (QIB) or to submit additional forms and documents to be eligible to participate in the event. Clients must ensure they meet the qualification standards to participate in each event as described in the corporate action offer terms.
1You can download a J.P. Morgan Mobile® app from the App Store or Google Play. App Store is a trademark of Apple Inc., registered in the United States and other countries. Android and Google Play are trademarks of Google Inc. Use of these trademarks is subject to Google Permissions. J.P. Morgan Mobile® app is available for select mobile devices. Message and data rates may apply.
Feature availability - and the steps to access features - may vary based on profile or account type, client segment, device and/or eligibility requirements.
