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Question

Can I have more information about fractional payments & why am I getting them?

Answer

Fractional shares can arise in Corporate Actions where the terms of the event applied to your original holding do not equal a whole number of new shares.

For example, if you held 1066 original shares and the terms of the Corporate Action event were 1 new share for every 10 existing shares held then this would result in a total of 106.6 new shares (1066 / 10 = 106.6).

Because the share markets do not allow fractional share holdings, the 0.6 of a share is unable to be allocated to you. Instead you will just receive the 106 shares. As Barclays has underlying clients for stocks, if they also have fractional shares, enough of these will form a whole share nominal (as the registrars would see it).

For example your 0.6 share and another clients 0.5 share would result in 1.1. This would be rounded down to 1 share. When this happens, Barclays will look to sell these fractional shares in the market and distribute the proceeds out to the clients, proportioned on their fractional holding. If the share price the stock was sold at, multiplied by your fractional share amount is greater than £5 then you can expect to receive a fractional payment.

For example if the sale price was £9 per share, this would be multiplied by your 0.6 share to equal £5.40 and you would be
entitled.

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