CORPORATE ACTIONS | கார்ப்பரேட் நடவடிக்கைகள்

INTRODUCTION: 

Let me take you to a small story, Mr. Sanjay is an Entrepreneur. He decided to open a new Restaurant. He has done a lot of search and analysis and found a new place to open a restaurant in Chennai. He put all his money and also borrowed some money from his friends and family members and opened the restaurant. After a few months, Sanjay gained a huge profit and informed his friends and family members about it, and returned double the money that he borrowed.

So, what we can understand from here is that It is a legal requirement that a company informs shareholders when it makes a decision that impacts a stock's share price. This is known as Corporate Action.

Basically a corporate action is :

1. An event carried out by a company that impacts its share price and shareholders.
2. It must be approved by a company's shareholders and board of directors.
3. When the information is passed in the form of announcement to all the investors of the company through the board of directors.

TYPES OF CORPORATE ACTIONS:

Typically, there are more number of corporate actions, we will discuss only about the major important things. Some of the important corporate actions are:

1. Dividend: Distributing the profits the company gained to the shareholders.
2. Bonus Issue: Additional shares which are given for free to the existing shareholders.
3. Right Issue: Additional shares which are offered to the existing shareholders on a discounted price. Not for free.
4. Buy Back: The company purchase its own shares from the share holders.
5. Stock split off: The company's shares that you hold are split in to multiple shares or units.

Now, the question is

1. Why the company have to do it?
2. What is the motive of the company in providing Dividend and Bonus issues? 
3. Does the Buyback is going to benefit the shareholders and the company? 
4. Will it affect the performance of the company and its share price?

Well, to know the answer we have to understand all the above corporate actions in details to become a future successful investor. We will discuss about the above each corporate actions in detail in separate posts. Don't forget to see the upcoming posts.

 

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.