What are CVRs, and does etoro support them?

Contingent Value Rights (CVRs) are a type of financial instrument that may be issued to shareholders during certain corporate actions, such as mergers or acquisitions. A CVR gives the holder the right to receive a potential future payment based on the outcome of a specific event, such as regulatory approval or sales performance.

CVRs are generally non-transferable and have an expiry date. For positions held on etoro, CVRs are treated as non-transferable in all cases. If the specified conditions are met before the CVR expires, the holder receives the agreed payout. If not, the CVR expires worthless.

How does etoro handle CVR distributions?

In the event of a CVR distribution, holders will receive the CVR directly in the main portfolio.

What if I hold a CFD?

Holders of CFD positions are not eligible to receive CVRs. CFD positions will be closed at a value that reflects the last available market rate at the time of closure.

Learn how Stock Margin positions are handled in the event of a CVR distribution