Corporate actions
Corporate action
Any company event that changes the shares you hold or their terms.
How it works
Splits, dividends, rights issues, spin-offs, mergers, name changes and ticker changes are all corporate actions. Some need a decision from you; most do not.
They are the main reason portfolio records drift out of line with reality, because each one requires an adjustment somewhere.
Where it misleads people
Mandatory actions happen whether or not you respond. Voluntary ones lapse if you do nothing, and lapsing is almost always the worst available outcome.
Related terms
- Stock splitDividing existing shares into more, smaller shares, leaving the total value unchanged.
- Rights issueAn offer letting existing shareholders buy new shares at a discount, in proportion to their holding.
- Spin-offA company separating part of itself into a new, independently listed company.
- Merger and acquisitionOne company buying another, for cash, shares, or a combination.
- Cost basisWhat you actually paid for a holding, including fees — the number every gain or loss is measured from.
Mentioned in
More in Corporate actions
- Delisting
- Consensus estimate
- Dilution
- Analyst rating
- Dividend cover
- Underwriter
- Dividend cut
- Dividend reinvestment
All 26 Corporate actions terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.