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.

Bonus
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 ...
Wed, 10 Apr, 2019 at 3:03 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
Offer For Sale (OFS)
What is OFS OFS, introduced by the Securities and Exchange Board of India,(SEBI) in February 2012, helps promoters of listed companies dilute stake thr...
Wed, 10 Apr, 2019 at 3:22 PM