Stock Swap 

Use

When you perform a stock swap, you exchange the positions of a stock for the positions of another stock at a fixed swap ratio.

A stock swap can be performed for a class when the issuer insists upon it. Alternatively, a stockholder has the right/offer to swap a stock and can choose whether or not to exercise this right.

This is why there are two ways of representing stock swaps in the R/3 System:

When you choose this option, the swap is executed for all the positions of the class in each company code.

When you choose this option, you can exercise the right for individual positions.

Integration

Stock swap as a corporate action
  1. You create and activate the stock swap as a corporate action in the system.
  2. You post the corporate action for each company code.

Stock swap as a security right
  1. You create the data for the stock swap in the class data (Stock swap tab).

    2. Entering Stock Swap Data

  2. The stock swap appears as an executable right in the Exercise security right function.
  3. Exercise the security right.

Prerequisites

Stock swap as a corporate action
  • You must have created the securities involved as classes.
  • Positions must exist for the stock you want to swap.

Stock swap as a security right
  • You have created the stock swap data in the class data for the stock that vests the right. You must have created the class data for the stock you want to receive as a result of the swap.
  • Positions must exist for the stock you want to swap.

Features

For more information on processing corporate actions or on exercising rights, see: