Interested to Buy Any Domain ? << Click Here >> for more details...
Name three (3) corporate action types
- 6 Answers
- 18954 Views
- FactSet Systems, Shore Infotech, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / vaheed
Types Of Corporate Actions
Corporate actions are classified as mandatory, voluntary and mandatory with choice corporate actions.
Mandatory Corporate Action: A mandatory corporate action is an event initiated by the corporation by the board of directors that affects all shareholders. Participation of shareholders is mandatory for these corporate actions. Mandatory Corporate Actions Includes Cash Dividend, Stock Splits, Mergers, Pre-refunding, Return of capital, Bonus Issue, Asset ID Change, Pari-passu and Spinoffs.
Stock Split and Reverse Spilt: A corporate action in which a company’s existing shares are divided into multiple shares. For Ex. A company with 100 shares of stock price Rs 50 per share (100*50 = 5000). The company splits it shares 2 for 1. There are now 200 shocks for Rs 25 each (200*25 = 5000) . The reason why companies split their stock is to make them more affordable to investors because stock price reduces after it is split. Likewise, reverse split increases the stock price while reducing number of outstanding shares.
Spin-Offs: Spin off means a company breaking up itself into smaller units. The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company.
Dividend Payouts: Dividend is the payment made to the investor for sharing the profits a company has made.
Mergers and Acquisitions: Mergers is a event where two or more companies merge into one aiming to be more competitive and for more profitability. Likewise Acquisition means a bigger company acquiring a smaller one for further expansion.
Bonus Issue: It is an additional dividend given to the shareholders that can be in cash or in the form of stock. When companies have outstanding performance with surplus profit, they may decide to issue bonus to the shareholders.
Voluntary Corporate Action : Voluntary corporate actions, are actions requiring a decision from the investor on whether or not to participate. Corporation will not process these actions automatically because the decision on whether to participate will vary for every investor. Shareholders may chose to take no action which will leave their securities unaffected by the Corporate Action. Voluntary corporate action includes Tender Offer, Rights issue, Making buyback offers to the share holders while delisting the company from the stock exchange etc.
Buyback: Buyback is an action in which company offers to buys back its stock from the current share holders at an attractive price. The reason is to reduce the shares outstanding in the market or to reduce the stake of shareholders in company.
Rights Issue: It refers to offering additional shares to the current shareholders of the stock. This is done by companies to raise capital for further expansion which provide its existing shareholders the right to buy the stock at discounted rates than price making it more lucrative.
Mandatory With Choice Corporate Action : This corporate action is a mandatory corporate action for the shareholder but they are being presented with options. An example is cash or stock dividend option with one of the options as default. Share holders may or may not submit their elections. In case a share holder does not submit the election, the default option will be applied.
Dividend Payouts: Dividend is the payment made to the investor for sharing the profits a company has made. It can be cash dividend or stock dividend where company offers stock as a dividend to the current shareholders.
| Is This Answer Correct ? | 15 Yes | 1 No |
Answer / kiran
stock split,dividend,merger , acquisition,spin off,rights issue
| Is This Answer Correct ? | 6 Yes | 2 No |
Answer / santhireddy
mandatory corporate action,voluntory corporate action,mandatory with choice corporate action
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / bijay kumar arakh
corporate actions are acquisition,merger,spin off,stock split,bonus issue ec
| Is This Answer Correct ? | 0 Yes | 1 No |
Explain me your track record in previous jobs, specifically speaking to any mistakes you may have made. There is little room for error in accounting?
What is the difference between General Ledger and Ledger?
bonus provision entry
What are the activities that are included in the cash flow statement?
Please answer me for the followings 1. i taken an office on January @ rent 28000.00 for one year and i paid 14000.00 as first payment balance will be paid on august. in tally how we post this and under which account especially balance 14000.0 under which account. 2.i have taken a loan from mr. A the amount is 100000.00 on January and the interest i need to pay on march 21000.00 the interest which iam going to pay is liability not a expense and it will be a expense in future, how we can post this also in tally and under which account. please somebody guide me who knows regards niyas es
what is entry for salary advance paid and received? the salary entry enter to Indusvel name
simple meaning of debit and credit...?
Under the accrual basis of accounting, when revenues are reported in the accounting period?
Recent trends in Corporate Governence?
0 Answers Capital IQ, Infosys,
How can do it TDS in accounts?
Tell me what is the difference between accumulated depreciation and depreciation expense?
Goods lost by fire rs.5000 it was partly insured insurance company admit the claim for 3500 what will be the journal entry
Audit 
