What is a corporate action, and what are its various types?

Question

Accepted Answer

Corporate action refers to any event initiated by a publicly traded company that impacts its shareholders.

Corporate actions can include stock splits, dividends, mergers and acquisitions, rights issues, and spin-offs.
Stock split: When a company divides its existing shares into multiple shares, e.g., 2-for-1 split.
Dividends: Distribution of a portion of a company's earnings to its shareholders.
Mergers and acquisitions: When two companies combine or one company acquires another.
Rights issues: Offering existing shareholders the right to buy additional shares at a discounted price.
Spin-offs: Creating a new independent company by separating a division or subsidiary from the parent company.

Accepted Answer

Corporate Action refers to any event that involves a change in the ownership or capital structure of a publically traded company. Corporate Actions can have a significant impact on the value of a company's securities.

Types of Corporate Actions:

Stock splits, Reverse Stock splits, Dividends, Mergers & acquisitions, Stock Buybacks, Spin-offs, and Rights offerings.

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What is a corporate action, and what are its various types?

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