【Structure Explained | bStocks “Dividends” Are Not Cash Deposits】
Bottom line: The net distribution will be converted into more token units, rather than paid into your account as cash. Binance’s announcement states that, after applicable taxes are deducted, dividends related to IBMB, AAPLB, GLWB, and LLYB will be reinvested in additional bStocks units or fractional shares of the same underlying securities. The announcement also lists periods during the distribution when some conversions are available and when deposit and withdrawal services are suspended. More importantly, bStocks represent an interest in underlying securities held by the issuer; they are not the same as directly owning shares in the corresponding companies. The announcement states that the products are offered through an ADGM-approved prospectus and are not offered in other jurisdictions. This is only an explanation of the mechanism and does not constitute trading advice. Which point do you think should be highlighted most clearly: “net amount reinvested” or “not direct share ownership”?
Source: [Official Binance announcement](https://www.binance.com/en/support/announcement/f3b32b406278474ab27c02685b33540c)
Disclosure: This content may qualify for Binance Square Write to Earn; rewards are subject to platform rules and are not guaranteed. Not investment advice.
#bStocks #TokenizedSecurities
Bottom line: The net distribution will be converted into more token units, rather than paid into your account as cash. Binance’s announcement states that, after applicable taxes are deducted, dividends related to IBMB, AAPLB, GLWB, and LLYB will be reinvested in additional bStocks units or fractional shares of the same underlying securities. The announcement also lists periods during the distribution when some conversions are available and when deposit and withdrawal services are suspended. More importantly, bStocks represent an interest in underlying securities held by the issuer; they are not the same as directly owning shares in the corresponding companies. The announcement states that the products are offered through an ADGM-approved prospectus and are not offered in other jurisdictions. This is only an explanation of the mechanism and does not constitute trading advice. Which point do you think should be highlighted most clearly: “net amount reinvested” or “not direct share ownership”?
Source: [Official Binance announcement](https://www.binance.com/en/support/announcement/f3b32b406278474ab27c02685b33540c)
Disclosure: This content may qualify for Binance Square Write to Earn; rewards are subject to platform rules and are not guaranteed. Not investment advice.
#bStocks #TokenizedSecurities
