Today I went looking for what a bStock dividend actually pays and found two Binance pages that disagree.
The bStocks site promises the same economic entitlement as a shareholder. The Bahrain launch disclaimer says holders are not entitled to any dividends at all.
The mechanism. A dividend never reaches you as cash. The issuer collects it, withholding is applied, and the rest is rebased into your balance by the Multiplier.
What you get. Compounding with no action and no fee, on a fraction of a share.
What you pay. Three things.
1️⃣ Withholding. The standard US rate on dividends to a non-resident is 30% unless a treaty applies. Binance CIS published IBMB near 2.2% on 4 August. Net, closer to 1.5%.
2️⃣ The exit shuts. For Apple and IBM the snapshot was 10 August, 00:00 UTC, and conversion into the share was suspended from 8 August. The dividend lands while the door is shut.
3️⃣ No choice. You cannot take the cash instead. The issuer says the adjustment may not reflect the dividend's full value.
I read documents, not my own screen, and have never held a bStock through a dividend. Check the announcement for your ticker.
@BinanceCIS which rate applies to a CIS holder?
$IBMB
#bstockscis
The bStocks site promises the same economic entitlement as a shareholder. The Bahrain launch disclaimer says holders are not entitled to any dividends at all.
The mechanism. A dividend never reaches you as cash. The issuer collects it, withholding is applied, and the rest is rebased into your balance by the Multiplier.
What you get. Compounding with no action and no fee, on a fraction of a share.
What you pay. Three things.
1️⃣ Withholding. The standard US rate on dividends to a non-resident is 30% unless a treaty applies. Binance CIS published IBMB near 2.2% on 4 August. Net, closer to 1.5%.
2️⃣ The exit shuts. For Apple and IBM the snapshot was 10 August, 00:00 UTC, and conversion into the share was suspended from 8 August. The dividend lands while the door is shut.
3️⃣ No choice. You cannot take the cash instead. The issuer says the adjustment may not reflect the dividend's full value.
I read documents, not my own screen, and have never held a bStock through a dividend. Check the announcement for your ticker.
@BinanceCIS which rate applies to a CIS holder?
$IBMB
#bstockscis
Didn't know about withholding
0%
Knew it, fine with it
0%
I avoid dividend tickers
0%
I exit before the snapshot
0%
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