#bstockscis There’s an interesting detail in Binance bStocks that I hadn’t really thought about before: what happens if a company pays dividends or does a stock split?
With bStocks, these corporate events are handled automatically through a special mechanism called the Multiplier. If the underlying company pays a dividend, its net amount does not come as a separate cash payment—it's reinvested into the underlying share, and the number of bStocks is adjusted accordingly.
With a split, the idea is even more obvious: for example, if the company does a 2:1 split, the number of tokens increases twofold, and the price per token is adjusted proportionally.
I think this is a good example of how tokenization tries to move not only the stock’s price onto the blockchain, but also the related corporate events.
That said, it’s important to remember that bStocks have their own structure and are not direct ownership of the company’s shares.
What do you think about this way of handling dividends—do you find it more convenient to receive them automatically via reinvestment, or would you prefer a separate payout?
@BinanceCIS #bStocksCIS
With bStocks, these corporate events are handled automatically through a special mechanism called the Multiplier. If the underlying company pays a dividend, its net amount does not come as a separate cash payment—it's reinvested into the underlying share, and the number of bStocks is adjusted accordingly.
With a split, the idea is even more obvious: for example, if the company does a 2:1 split, the number of tokens increases twofold, and the price per token is adjusted proportionally.
I think this is a good example of how tokenization tries to move not only the stock’s price onto the blockchain, but also the related corporate events.
That said, it’s important to remember that bStocks have their own structure and are not direct ownership of the company’s shares.
What do you think about this way of handling dividends—do you find it more convenient to receive them automatically via reinvestment, or would you prefer a separate payout?
@BinanceCIS #bStocksCIS