Corporate Action implies an action at the corporate level which has a significant impact on the stakeholders and the financial structure of the company. These events are initiated by the issuer of securities, which may impact the stakeholders positively or negatively.

There is an immediate impact on the share price, whenever the company is planning to come up with corporate actions.  It is very important for a shareholder to have an understanding of how does corporate actions work and how will it affect company’s share price and performance. This understanding will aid shareholders in deciding whether to buy or sell a particular stock.

To read more Visit : https://www.elearnmarkets.com/blog/effect-of-corporate-actions/