What are corporate actions and what impact do they have on stock prices?

Financial initiatives that increase a company's stock price Legal proceedings initiated against a company, causing a decline in stock price Financial decisions made by a company that can affect its stock price Marketing campaigns designed to boost a company's stock price

What are dividends and how are they typically paid out to shareholders?

Loans provided by shareholders to a company, repaid with interest A portion of a company's profits distributed to shareholders on a per-share basis Fees charged to companies for listing on the stock exchange Bonuses awarded to company executives based on performance

What is the ex-dividend date and why is it important for investors?

The date on which a company announces its upcoming dividend payment The date on which shareholders must sell their shares to receive the dividend The first date on which a new stock begins trading on the exchange The date on which shareholders must own the stock to be eligible for the dividend

What is a bonus issue and how does it impact a shareholder's investment?

A cash bonus awarded to employees, funded by issuing new shares Additional shares given to existing shareholders, increasing the number of shares but not the overall investment value A type of loan offered to shareholders at a discounted interest rate A stock split that increases the number of shares and proportionally decreases the share price

How does a stock split differ from a bonus issue?

A stock split increases the number of shares but decreases the face value, while a bonus issue does not affect the face value A stock split involves issuing new shares to raise capital, while a bonus issue is a reward to existing shareholders A stock split decreases the number of outstanding shares, while a bonus issue increases it There is no difference between a stock split and a bonus issue

What is the primary purpose of a rights issue?

To reward loyal shareholders with additional shares at no cost To raise capital from existing shareholders by offering them the right to purchase new shares at a discount To split the company's stock into multiple smaller companies To repurchase outstanding shares from the market

What is a share buyback and what are some reasons why a company might initiate one?

When a company repurchases its own shares from the market, potentially to increase share value or prevent a takeover When a company sells additional shares to the public to raise capital When a company issues dividends to its shareholders When a company splits its stock into multiple shares