Corporate actions are events that affect a company's securities, directly impacting shareholders. This article provides a brief overview of various corporate actions.
Redemption: Occurs when a company buys back its outstanding securities, often to refinance or simplify its capital structure. Shareholders receive instructions on the redemption process and timeline, although liquidity from the payment might not be immediate.
Reverse Split: A company decreases its outstanding shares by a specific ratio to increase the per-share trading price. Adjusted shares may face a short period of non-tradability post-action.
Capital Increase Cash: Involves a company issuing new shares to raise funds, offered to existing shareholders at a predetermined price. The tradability of new shares depends on market and regulatory conditions. Learn more
Forward Split: A forward (stock) split increases the number of a company's outstanding shares by a certain ratio, aiming to lower the share price and enhance liquidity. It does not affect shareholders' equity or the company's market value at the split time.
Unbundling (Spin-offs/De-merger): Separates different business units or assets into independent entities. Shares of these entities might require time before becoming tradable due to regulatory considerations.
Share Exchange: A merger or acquisition event where one company's shares are exchanged for another's. There might be a non-tradability period post-exchange.
Rights Distribution: Companies issue rights to shareholders to buy additional shares at a set price. The tradability of these shares may be limited by certain conditions and timelines.
Stock Dividend: Distributes additional shares to shareholders as a dividend, potentially leading to a period where these shares are not immediately tradable.
ISIN Change: An ISIN change alters a company's International Securities Identification Number, possibly leading to a temporary trading halt as systems adjust to the new ISIN.
Spinoff Warrant: Are distributed to shareholders, granting them the right to buy securities of a subsidiary or newly created entity at a predetermined price. These warrants' tradability can be subject to specific conditions.
Reorganization: Involves significant structural or operational changes, like mergers or divestitures, affecting shareholders' holdings and the tradability of new securities.