What is a reclassification, and how does etoro handle them?

A reclassification is when a share or company is reassigned to a different category for administrative, regulatory, or structural reasons, without changing the underlying value of the investment.

This can happen for several reasons, including changes to how the stock is traded or classified. For example, a stock may be reclassified due to corporate actions, changes to share class structure, or updates to market or regulatory standards.

The new asset may have a different symbol, ISIN, currency, or exchange.

How does etoro handle a reclassification?

Positions may be changed or replaced on a best-efforts basis, subject to the issuer’s terms. This means:

• the original position may be replaced with a new asset reflecting the reclassification
• the new asset may differ in symbol, ISIN, currency, or exchange
• any fractional amounts that cannot be delivered may be paid in cash

The updated position will appear in your portfolio once the reclassification is complete.

If the required exchange or currency conversion is not supported, the original asset will be delisted, and a cash amount equal to the average liquidation value of the new asset will be credited, where provided by our liquidity providers.

For example, this can apply even when the reclassification ratio is one-to-one, if the new asset is listed in a different currency or on a different exchange.

What if I hold a CFD position?

CFD positions are not replaced with a new underlying asset. Instead, the position may be adjusted on a best-efforts basis to reflect the economic effect of the reclassification, if any.

These adjustments are made in accordance with the issuer’s terms and based on available pricing.

Similar to the underlying asset, if the required exchange or currency conversion is not supported, CFD positions will be closed and a cash amount equal to the average liquidation value of the new asset will be credited, where provided by our liquidity providers.