Glossary · 10 terms
Corporate Actions
All corporate actions terms in the EquitiesIndia.com glossary — plain-English definitions written for Indian retail investors.
Amalgamation(Merger)
Amalgamation is the merger of two or more companies into a single entity, where either one company absorbs the other (merger by absorption) or both companies combine to form an entirely new company.
Bonus Issue(Scrip Issue)
A bonus issue (or scrip issue) is a corporate action where a company distributes additional shares to existing shareholders free of cost, funded from its reserves and surplus, in a specified ratio to existing holdings.
Buyback(Share Repurchase)
A share buyback (or share repurchase) is a corporate action where a company uses its own funds to repurchase its equity shares from the open market or through a tender offer, reducing the total shares outstanding.
Delisting(Share Delisting)
Delisting is the process by which a company's shares are removed from the trading platform of a stock exchange, either voluntarily (at the company's initiative) or compulsorily (by SEBI or the exchange for regulatory non-compliance).
Dividend(Cash Dividend)
A dividend is a distribution of a portion of a company's profits to its shareholders, declared by the board of directors and paid out of retained earnings or current-year profits.
Ex-Date(Ex-Dividend Date)
The ex-date (or ex-dividend date) is the first trading day on which shares trade without the entitlement to an upcoming corporate action benefit such as a dividend, bonus, or rights issue.
Open Offer(Takeover Offer)
An open offer is a mandatory or voluntary public announcement by an acquirer to purchase at least 26% of the total shares of a target listed company from its public shareholders at a specified price, triggered by SEBI's Takeover Code.
Record Date(Record Date for Dividend)
The record date is the cut-off date set by a company to determine which shareholders are eligible to receive a corporate action benefit such as a dividend, bonus issue, rights issue, or stock split.
Rights Issue(Rights Offering)
A rights issue is a corporate action in which a company offers additional shares to its existing shareholders at a discounted price, in proportion to their current holdings, as a means of raising fresh capital.
Stock Split(Share Split)
A stock split is a corporate action that divides existing shares into a larger number of shares at a proportionally lower price, increasing share count without changing the company's total market capitalisation.