What are corporate actions?

Corporate actions refer to the various activities that directly impact the assets issued by a publicly traded company. These actions can be a change in the company’s name, issuing dividends, or making a major restructuring move. Whatever these actions are, they directly affect the company and its shareholders.

How do corporate actions affect a company?

Corporate actions can significantly impact a company’s prospects and share price, so shareholders and investors should keep tabs on them. These events typically need approval by the board of directors and may even require a thumbs up from shareholders. Corporate actions can be voluntary or mandatory and good or bad.

What are the different types of corporate actions?

Corporate actions include stock splits, dividends, mergers and acquisitions, rights issues and spin-offs. All of these are major decisions that typically need to be approved by the company's board of directors and authorized by its shareholders. A cash dividend is a common corporate action that alters a company's stock price.