Many companies that offer shareholder rewards through the ShareClub Platform set minimums, or conditions, that shareholders must meet to become eligible for the perk. In this article, we're going to take a look at the types of conditions that companies set, why, and how they work.
Let's take a look at the two most common conditions for shareholder rewards.
The first typical condition for a shareholder reward is MSQ, or Minimum Share Quantity. To be eligible for a reward, you must hold a minimum number of shares in the public company offering it. For example, own 100 shares of NYSE:EXAMPLE to have eligibility.
Minimum Hold Period, also known as MHP, is a secondary condition that shows on only some perks. This condition dictates that a shareholder must have held shares for some amount of time in order to redeem the perk. For example own at least 2 shares of NYSE:EXAMPLE for 4 months to have eligibility.
Companies mix and match shareholder reward conditions depending on the specific perk. For example, a reward may mandate that you own only 1 share for 3 years (a company looking to reward shareholders who have been with them for a long time). Another reward may mandate that you own 100 shares, with no MHP.
Note: The most common types of conditions for shareholder rewards are a combination of MSQ and MHP.
Once you meet the condition(s), you'll be eligible to redeem the reward. Reward redemptions very based on category. For example, a redemption for an in person facility tour is different than a redemption for 10% off a product. Read this article to learn more about the types of shareholder reward redemptions:
While it depends on the company offering the reward, there are two main processes for verifying that you meet the redemptions of shareholder.
There are many companies that offer shareholder rewards directly to shareholders. While it depends on the specific company, verification typically includes a paper application and brokerage statement printout that is then faxed to the company.
It can take several weeks for the reward to be processed. But, for some companies who have these processes like Ford, or Norwegian Cruise Lines, the savings can really add up, making it worth the wait.
The ShareClub Platform makes redeeming shareholder rewards easy. Simply connect your brokerage account via Plaid, and browse shareholder rewards.
It's easy to know what rewards you already meet the conditions for, what rewards you aren't yet eligible for, and even rewards that you're partially eligible for.
After verifying against these conditions, you can immediately redeem many redemption types like vouchers, coupon codes and in-app offers.
In this article we covered the main conditions that investors may encounter when looking to redeem a shareholder reward. We also discussed methods that investors can use to redeem these rewards.