09 - What Happens to Dividends?
Here's something many people don't realize about bStocks.
When the underlying security pays a dividend, the process doesn't simply work like receiving traditional cash dividends directly.
For bStocks, the net dividend value is automatically reinvested through an on-chain mechanism called the Multiplier.
The simplified flow:
Underlying dividend
↓
Applicable deductions
↓
Net dividend value
↓
Automatic reinvestment
No manual reinvestment step is required.
Your bStock balance is adjusted proportionally through the mechanism.
This is an important difference in how corporate actions can be handled in a tokenized structure.
And as always, applicable taxes and withholding can affect the net amount.
Learn more about bStocks on Binance Academy:
Binance Academy
Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
#BStocks
Here's something many people don't realize about bStocks.
When the underlying security pays a dividend, the process doesn't simply work like receiving traditional cash dividends directly.
For bStocks, the net dividend value is automatically reinvested through an on-chain mechanism called the Multiplier.
The simplified flow:
Underlying dividend
↓
Applicable deductions
↓
Net dividend value
↓
Automatic reinvestment
No manual reinvestment step is required.
Your bStock balance is adjusted proportionally through the mechanism.
This is an important difference in how corporate actions can be handled in a tokenized structure.
And as always, applicable taxes and withholding can affect the net amount.
Learn more about bStocks on Binance Academy:
Binance Academy
Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
#BStocks
