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Corporate Actions

Corporate actions are events initiated by a company that affect its shareholders and other stakeholders. These actions include stock splits, dividends, mergers, acquisitions, rights issues, and spinoffs. Corporate actions can influence a company’s stock price and overall market perception, and they often require shareholder approval. Investors need to be aware of corporate actions, as they can have significant implications for their holdings.

Example

A company declares a dividend, distributing a portion of its profits to shareholders, which is an example of a corporate action.

Key points

• Corporate actions are events initiated by a company that impact shareholders and stakeholders.

• Common examples include dividends, stock splits, mergers, and rights issues.

• These actions can influence stock price and require shareholder approval.

Quick Answers to Curious Questions

Examples include dividends, stock splits, mergers, acquisitions, rights issues, and spinoffs.

Corporate actions can influence stock prices, shareholder equity, and voting rights, making it important for investors to stay informed.

Many corporate actions, such as mergers and rights issues, require shareholder approval, though routine actions like dividends may not.

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