Corporate Actions

Investors frequently come across terms such as bonus, stock splits , right issues and buy back. All these are examples of what we call corporate actions. These are simply actions taken by a company once agreed upon by its board of directors and then authorized by its share holders. All such actions have announcement date, ex-date, and record date. Let’s have a quick look at what these corporate actions mean which will help us understand their impact on the company’s share prices.

A Bonus issue is a stock dividend. A company allots these shares for rewarding its shareholders. Issued out of the company’s reserves,bonus shares are free ...
Mon, 12 Jun, 2017 at 1:31 PM
Stock Split
This is another way of increasing retail participation and is a quite common phenomenon in the share market. Here the face value of the stock is split into ...
Mon, 12 Jun, 2017 at 1:32 PM
Rights Issue
A rights issue is for raising fresh capital. The company, instead of going public, approaches its shareholders’ with an option to subscribe to it in proport...
Mon, 12 Jun, 2017 at 1:22 PM
Share Buyback
It is quite a familiar term and you will every now and then hear a company buying back its shares from the market. What it means is that the company will bu...
Thu, 31 Jan, 2019 at 4:02 PM