1.1.12 Corporate Actions on Securities

Some of these corporate actions can be directly correlated to the return, which the investors earn on these securities and others are relating to the various happenings on the securities during its life cycle.

Investors’ returns:

Corporate actions, which fall under this category, can be:

• Cash dividend on equities / preference shares
• Stock dividend on equities
• Interest on bonds / fixed income securities
• Redemption of bonds / fixed income securities either on Call / maturity date
• Exercise of rights / warrants associated with securities

Corporate actions, which do not fall under this category are:

• Stock splits
• Mergers and acquisitions

This topic has the following sub-topics:

• Cash Dividend
  
• Stock Dividend
  
• Interest on Fixed Income Securities
  
• Redemption on Fixed Income Securities
  
• Rights / Warrants
  
• Stock Splits
  
• Mergers and Spin-offs