What happens if my stock is affected by a merger or tender offer?

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| This information is specifically for customers of etoro USA Securities Inc. Visit this Help Center page for more information on mergers and tender offers for etoro customers outside of the USA. |

If you hold stock in a company that is involved in a corporate event, your account may be affected.

Merger and acquisition (M&A)

An M&A is an event in which two companies combine to become one entity. The scenario and terms of the deal can vary greatly from case to case, but the most common type of M&A involves a larger company acquiring and incorporating a smaller company.

If you hold stock in the acquiring company in a merger:

The stock will continue to be offered and your positions will remain open.

If you hold stock in a company that is acquired as part of a merger:

All open positions of the acquired stock are closed, and we delist the asset from the etoro platform. Your Cash Available balance will reflect any profit or loss incurred from these trades.

M&A deals usually involve a payment of cash, stock, or a combination of both from the acquiring company to shareholders of the acquired company as compensation for their holdings. Each M&A deal is unique and can be complex, however, generally speaking in the event of an acquisition we handle the payment as follows:

• For cash mergers, positions are closed at the acquisition price outlined in the deal terms.
• For stock mergers, your position will be closed and settled in cash instead. The amount you receive is based on the average market price of the acquiring company’s shares at the time of liquidation, and will depend on prevailing market conditions.
• For mergers offering cash and stock, your position will be closed and settled in cash. The amount you receive includes the cash component plus the average market price of the acquiring company’s shares at liquidation.

Tender offer

A tender offer is when an individual or entity makes a bid to purchase the majority or all of the stock in a company. Shareholders can decide whether they wish to sell their shares.