What do you mean by corporate action?

Question

Accepted Answer

Corporate action refers to any event initiated by a publicly traded company that impacts its shareholders and can include dividends, stock splits, mergers, acquisitions, and more.

Corporate actions are events initiated by publicly traded companies
They can impact shareholders and may involve changes in ownership, capital structure, or financial position
Examples of corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, rights issues, and share buybacks

Accepted Answer

In simple words, any decision taken by the board of directors of a company which can have effects on the interest of the shareholders. It can be dividends etc. There are 3 types as well Mandatory- ex Dividend (shareholderhas to participate) Voluntary- ex Buyback (shareholder can choose to participate or not) Mandatory with choice - ex Dividend (they can choose cash or additional stocks)

What do you mean by corporate action?

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