corporate actions

📋 Understanding Corporate Actions in the Stock Market

Corporate actions are significant events initiated by publicly traded companies that directly affect shareholders, bondholders, and employees. These actions can lead to changes in a company’s stock price, investor confidence, and overall market dynamics.

Here’s a comprehensive list of the most common corporate actions investors should know about:

🔎 Major Corporate Actions

1. Stock Split
   Divides existing shares into multiple shares to boost liquidity.
2. Reverse Stock Split
   Reduces the number of shares, often to increase the per-share price.
3. Bonus Issue (Stock Dividend)
   Additional shares are issued to existing shareholders at no extra cost.
4. Rights Issue
   Existing shareholders are offered new shares at a discounted rate.
5. Stock Buyback (Share Repurchase)
   Company buys back its own shares to reduce share count and boost valuation.
6. Dividend Declaration
   Company shares profits with shareholders; can be regular or special dividends.
7. Interim Dividend
   A dividend paid before the financial year closes.
8. Final Dividend
   Paid at the end of the financial year, after final accounts.
9. Special Dividend
   One-time payout due to excess cash or extraordinary profits.
10. Cash Dividend
    Dividends paid in cash.
11. Scrip Dividend
    Dividends paid in the form of additional shares.

🏢 Restructuring and Mergers

12. Merger
    Two companies combine to form a new entity.
13. Acquisition
    One company purchases another.
14. Demerger (Spin-off)
    A division of a company becomes a separate independent company.
15. Takeover (Hostile Takeover)
    A company acquires another without mutual agreement.
16. Joint Venture
    Two or more firms collaborate to create a new business entity.
17. IPO (Initial Public Offering)
    A private company offers shares to the public for the first time.
18. FPO (Follow-on Public Offering)
    Existing public company issues additional shares.
19. Delisting
    Company voluntarily or involuntarily removes shares from the stock exchange.
20. Stock Exchange Listing
    Company lists its shares for public trading.
21. Secondary Listing
    Company lists on multiple stock exchanges.

💼 Shareholder & Market Activities

22. Buyback Tender Offer
    Company offers to repurchase shares at a premium price.
23. Share Consolidation (Reverse Split)
    Combining multiple shares into fewer shares.
24. Share Subdivision (Split)
    Breaking a share into smaller shares to improve liquidity.
25. Stock Swap
    Using company shares instead of cash for acquisitions.
26. Poison Pill Strategy
    Tactic to deter hostile takeovers.
27. Golden Parachute
    Special benefits for executives in case of a company takeover.
28. Shareholder Activism
    Shareholders attempt to influence company decisions.
29. Proxy Voting
    Shareholders appoint someone to vote on their behalf.
30. Management Buyout (MBO)
    Company executives purchase the company.
31. Leveraged Buyout (LBO)
    Buying a company primarily using borrowed funds.
32. Going Private
    A publicly traded company becomes privately held.

🏛️ Financial Distress & Debt Management

33. Bankruptcy Filing
    A legal declaration of inability to pay debts.
34. Liquidation
    Selling assets to repay creditors and shareholders.
35. Receivership
    Court-appointed control during financial distress.
36. Debt Restructuring
    Renegotiating debt terms to avoid default.
37. Recapitalization
    Changing the mix of debt and equity.
38. Bridge Financing
    Temporary funding to meet short-term requirements.
39. Green Shoe Option
    Over-allotment option during IPOs for price stabilization.

👥 Employee & Investor Incentives

40. Employee Stock Ownership Plan (ESOP)
    Offering shares to employees as part of compensation.
41. Stock Option Grant
    Providing employees the right to buy shares at a set price.
42. Restricted Stock Units (RSU)
    Shares granted to employees with vesting schedules.
43. Warrant Issue
    Right to purchase shares at a future date at a pre-set price.
44. Convertible Bonds Issue
    Debt instruments convertible into equity shares.
45. Preference Shares Issue
    Shares with fixed dividends, usually without voting rights.

💵 Fundraising & Investments

46. Corporate Bond Issue
    Companies raising money by issuing bonds.
47. Green Bonds Issue
    Funds raised for eco-friendly or sustainable projects.
48. Sovereign Bonds Issue
    Government-backed bond offerings.
49. Infrastructure Bonds Issue
    Bonds issued for infrastructure development.
50. Foreign Direct Investment (FDI)
    Investment by foreign companies into domestic businesses.
51. FII & DII Activity
    Investment activities by foreign and domestic institutional investors.

🛡️ Regulatory, Trading & Legal Actions

52. Short Selling Ban
    Temporary prohibition of short selling.
53. Insider Trading Disclosure
    Mandatory reporting of stock trades by insiders.
54. Trading Halt
    Temporary suspension of trading due to unusual activity.
55. Circuit Breaker Trigger
    Market-wide halt when extreme price volatility occurs.
56. Penny Stock Delisting
    Low-priced, high-risk stocks removed from exchanges.
57. Class Action Lawsuit
    Legal action by investors for financial losses or fraud.
58. ESG Reporting
    Disclosure of environmental, social, and governance practices.
59. Corporate Governance Policy Changes
    Adjustments in rules and procedures governing company operations.
60. CEO/CFO Resignation
    Executive departures affecting stock price and confidence.

🔎 Market & Trading Events

61. Shareholder Meeting (AGM/EGM)
    Annual or special meetings for shareholder decisions.
62. Analyst Rating Change
    Stock price reaction to analysts’ upgraded/downgraded opinions.
63. Company Rebranding
    Company changes its name, logo, or overall image.
64. Change in Accounting Policies
    Adjustments in financial reporting standards.
65. Currency Hedging Announcements
    Plans to manage foreign exchange risks.
66. Hedging with Derivatives
    Use of options, futures, or swaps to mitigate financial risk.
67. Private Placement of Shares
    Selling shares privately to specific investors.
68. Qualified Institutional Placement (QIP)
    Issue of shares to institutional buyers.
69. Global Depository Receipt (GDR) Issue
    Shares issued to global investors.
70. American Depository Receipt (ADR) Issue
    Shares issued in the US markets.

💼 Company Operations & Compliance

71. Treasury Stock Transactions
    Company transactions involving its own shares.
72. Regulatory Investigations
    Probes by government or regulatory bodies.
73. Financial Restatements
    Revisions of previously reported financial statements.
74. Anti-Dumping Duty Announcements
    Import tariffs to protect domestic industries.
75. Trade War Impact Statements
    Companies disclosing effects of international trade disputes.
76. Product Recalls
    Withdrawing faulty products from the market.
77. Patent Approvals or Litigation
    IP-related announcements affecting stock prices.
78. Drug Approvals (Pharmaceuticals)
    Regulatory approval of new medications.
79. Cybersecurity Breach Disclosure
    Announcing security breaches that may affect investor trust.
80. Data Privacy Violation Reports
    Disclosures of breaches and regulatory fines.
81. Government Contract Wins
    Announcing significant government project awards.
82. Joint Development Agreements (JDAs)
    Collaborations to develop products or services.
83. Royalty Agreements
    Licensing intellectual property for revenue streams.
84. CSR Initiatives
    Corporate social responsibility activities disclosed publicly.
85. Dividend Reinvestment Plan (DRIP)
    Allowing shareholders to reinvest dividends into company stock.
86. Depository Receipts Cancellation
    Withdrawal of foreign market share listings.

📊 Market Index & Capital Adjustments

87. Index Inclusion or Exclusion
    Company added to or removed from a major market index.
88. Free Float Adjustments
    Changes in the number of shares available for trading.
89. Changes to Voting Rights
    Adjustments to how much voting power shares carry.
90. Legal Settlements
    Announcing outcomes of lawsuits that affect company value.
91. AML Violations
    Penalties for anti-money laundering non-compliance.
92. Supply Chain Disruption Disclosures
    Announcing logistics or production delays.
93. Inflation Impact Reports
    Company guidance on cost pressures.
94. Interest Rate Sensitivity Reports
    Evaluating risks tied to changing interest rates.
95. Management Guidance Updates
    Company outlook revisions for future performance.
96. Quarterly & Annual Earnings Reports
    Regular disclosures of company financial health.
97. Stock Lending and Borrowing (SLB)
    Institutional investors lending shares.
98. Dual-Class Share Structure Changes
    Altering rights between classes of shares.
99. Capital Expenditure Announcements
    Company investment plans to expand operations.
100. Portfolio Management Fees & Announcements
     Details of performance or fee structures for asset management.

🎯 Conclusion

Staying informed about these corporate actions is essential for any investor. Each action can directly or indirectly impact your investments. Monitoring company announcements and regulatory filings helps investors make timely, well-informed decisions.