Corporate action
Also called: corporate actions
A company decision that changes what its shareholders receive or hold, such as a dividend, split, bonus issue, rights issue or buyback.
Corporate actions are announced by the company and through the stock exchanges, with dates that decide who is entitled to the benefit. Many of them, such as splits and bonus issues, change how a holding is packaged without changing its value.
Historical share prices are adjusted for corporate actions so that prices before and after can be compared.
Example
A 1:1 bonus issue doubles the number of shares each investor holds and roughly halves the share price.
Learn more in these lessons
- Dividends, splits, bonus shares and other corporate actionsWhat happens to my shares in a split, bonus issue or rights issue?
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