Corporate Action

A corporate action is any decision made by a company that will affect its shareholders and bondholders. Typically, such actions are approved by the firm’s Board of Directors, although others will involve a shareholder vote at the firm’s annual meeting.

A company decides they want to raise their dividend. That’s is a corporate action.

The firm decides to issue new debt. Corporate action.

The firm announces a new marketing campaign. Not a corporate action.

The firm splits its stock, announces a merger, or spins off a division. All three are corporate actions.

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