What are corporate actions? Where can I see them?
1. Bonus: An extra dividend or issue paid to the shareholders of a company.
2. A stock split is a corporate action in which a company increases the number of shares by lowering the stock's face value. Companies usually split shares to increase liquidity because the stock price drops after the split. A split increases the number of shares while decreasing the face value of the investment, but the total value remains the same. Within a week, the split shares will be credited.
3. Ex-Date: The ex-date is the date on which a stock begins trading without the benefit of corporate action, i.e., ex-benefit. In order for the stocks to be credited to the demat account on the record date, the client must purchase shares at least two days before the record date. As a result, the ex-date, or the date on which stocks trade without corporate action, is one day prior to the record date.
4. Cum-dividend: Stocks where the dividend is about to be paid. Until the ex-date, a stock will trade with the benefits of a corporate action or cum-benefit (i.e., cum-rights, cum-dividend, etc.).
You can easily see corporate actions on a stock. The stocks in your watchlist will show a tag next to it, if it is Bonus you will see a "B" tag, a stock split will show an "S" tag, "eD" means Ex-dividend whereas "cD" means cum dividend
Connect with our client advisor executives on