what is corporate action? wt is the purpose and tpes of
corporate actions?
Answer Posted / guest
A corporate action is an event initiated by a public
company that affects the securities (equity or debt) issued
by the company. Some corporate actions such as a dividend
(for equity securities) or coupon payment (for debt
securities (bonds)) may have a direct financial impact on
the shareholders or bondholders; another example is a call
(early redemption) of a debt security. Other corporate
actions such as stock split may have an indirect impact, as
the increased liquidity of shares may cause the price of
the stock to rise. Some corporate actions such as name
change have no direct financial impact on the shareholders
Purpose:1).Return profits to shareholders
2).Influence the share price
3).Corporate Restructuring
Types:1).Mandatory Corporate Action(ex: its includes stock
splits, mergers, and spinoffs) 2).Voluntary Corporate(it
includes rights issue, making buyback offers to the share
holders while delisting the company from the stock exchange
etc.)
| Is This Answer Correct ? | 33 Yes | 3 No |
Post New Answer View All Answers
What is SOX
Up to what time we can show TDS Receivables under Advance Income Tax A/c?
what are the difference between banking institutions and financial institutions?
I have scooter , and its insurance expired for the past 1 yrs and i need to renew it ? how to , explain?
what is the difference between financial accouning and financial management?
when assessing the credit proposal of a prospective borrower if he gets internal rating below the hurdle rate what will you suggest as a banker
What is PE ratio formula ?
what do you mean by financial analysis and technical analysis ?
tell me about a time you had to deal with a conflict between a licensed and unlicensed personnel and how handled the situation?
Raju put labour charges bill for Rs 65000/- You are directed to deduct 5% security deposit and 1.15% TDS from the bill. Pass journal entry for it
what is mean by ledger
what is the process to return sales tax file?how can i prepared s.t. file?what should be qualification for it?
Define control account Thanks
What is deffered income
Expand--------TOS