Corporate actions refer to actions taken by listed companies that may affect the company or shareholders, such as dividend payouts, stock splits, and rights issues, which may affect shareholder equity, or actions such as changing names, codes, or addresses that have little impact on shareholders.
When it comes to actions that may affect shareholder equity, investors need to pay attention to the timing of different company actions.
Company Action Process
1) Announcement Date: The company will announce on the same day when there will be a company action, allowing investors to be informed in advance and decide whether to keep their stocks for the company action.
2) Ex Authorized Date/Ex Date: Investors who still hold the stock will automatically participate in the company's actions after settlement on the day before the ex rights date. For example, in the case of stock dividends, the interest announced to be distributed will be automatically deducted from the stock price when the market opens on the ex rights day.
3) Record Date: Often occurs when stocks receive dividends or bonus shares, usually two trading days after the ex rights date. On this day, the company will look at the list of holders, and the people on the list are the ones who have received dividends or bonus shares.
4) Payable Date: On this day, investors will receive stocks or dividends that have been distributed.