Type of Corporate Action, What is Life Cycle of Any Event/CA?

Question

Accepted Answer

The life cycle of a corporate action involves several stages from announcement to completion.

Corporate actions can include events such as mergers, acquisitions, stock splits, and dividend payments.
The first stage is the announcement, where the company publicly declares the event and its details.
Next, there is a record date where shareholders are identified and eligible to receive the benefits of the event.
The third stage is the ex-date, where the stock price is adjusted to reflect the event.
The fourth stage is the entitlement date, where shareholders are entitled to receive the benefits of the event.
Finally, the event is completed and shareholders receive the benefits.
The life cycle can vary depending on the type of event and the regulations in the jurisdiction.
Examples of corporate actions include Apple's stock split in 2020 and Microsoft's acquisition of LinkedIn in 2016.

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