As an investor, you’ll be exposed to various corporate actions. To be a well-informed investor, you need to understand how these affect your investments. The corporate actions are divided into two broad kinds: mandatory and voluntary. In addition, they differ for equities, fixed income products, and derivatives.
Corporate actions have various aims such as returning profits to shareholders, paying interest to creditors, organizational restructurings, purchase and sale offers, recalls, as well as actions that change prices of issued securities (i.e. stocks, bonds). In this section, we go into detailed descriptions of various corporate actions that may come your way. We start with mandatory and voluntary corporate actions for equities, and then move on to actions related to fixed income products and derivatives.
Related articles on this site:
This section provides comprehensive coverage of corporate actions