What is Corporate Action?

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Corporate Action refers to any event initiated by a publicly traded company that impacts its shareholders and may require their response or decision.

Corporate Action is a term used in the financial industry to describe any event that affects a company's shareholders.
These events can include stock splits, dividends, mergers, acquisitions, rights issues, spin-offs, and more.
Corporate Actions can be voluntary or mandatory, and they often require shareholders to take some action or make a decision.
For example, if a company announces a stock split, shareholders may need to exchange their existing shares for a greater number of new shares.
Another example is when a company declares a dividend, shareholders may need to decide whether to reinvest the dividend or receive it as cash.
Corporate Actions are important for investors as they can impact the value of their investments and their rights as shareholders.
Financial institutions and stock exchanges play a crucial role in facilitating and processing Corporate Actions.
Proper understanding and management of Corporate Actions are essential for investors, fund managers, and other market participants.

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