A: No. A CFD is a financial instrument linked to the underlying share price. Unlike exchange traded options, you will not acquire any rights or incur any obligations relating to the underlying share.
A: CFDs don’t give you the right to convert into actual shares. If they did someone would have to relinquish the shares as no new shares would be created. So CFDs don't have an automatic right, however, the cfd holder may have an agreement with the actual owners to purchase the shares at a fixed given price. Usually, however, the CFD will follow whatever is decided in the specific corporate action – more or less.
A: It’s an OTC (over-the-counter) product, which in this case does not follow the 3 pct rule....well at least at present...the FSA is working on disclosure rules to block covert stakes which rules are likely to come into force later in 2009
A: Ok, in that case the CFDs will no…so if you’re thinking to obtain certain rights some way or the other, it must be through shares. CFD traders do not have any real voting rights whatsoever. They cannot say who runs the company, and they do not go to an AGM.
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