Corporate action: Difference between revisions
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{{g}}A [[corporate action]] with regard to a [[security]] is an extraordinary event which changes the capital structure of the organisation — for example, a [[merger]], takeover, rights issue, stock split, restructuring — which obliges a shareholder to make a vote or exercise an election of some kind. To be distinguished from a normal [[annual general meeting]] —part of the peacetime governance of any publicly traded company, which, though giving rise to opportunities to vote, is ''not'' regarded as a [[corporate action]] as such. | {{g}}A [[corporate action]] with regard to a [[security]] is an extraordinary event which changes the capital structure of the organisation — for example, a [[merger]], takeover, rights issue, stock split, restructuring — which obliges a shareholder to make a vote or exercise an election of some kind. To be distinguished from a normal [[annual general meeting]] —part of the peacetime governance of any publicly traded company, which, though giving rise to opportunities to vote, is ''not'' regarded as a [[corporate action]] as such. | ||
[[ | [[Corporate action]]s can get tasty in the context of a [[stock lending]] arrangement, if the {{gmslaprov|Borrower}} is [[short]] the security in question on the [[record date]]. | ||
{{sa}} | {{sa}} | ||
*{{gmslaprov|Corporate actions}} under the {{gmsla}} | *{{gmslaprov|Corporate actions}} under the {{gmsla}} | ||
*{{eqderivprov|Merger Event}} in the {{eqdefs}} | *{{eqderivprov|Merger Event}} in the {{eqdefs}} | ||
Revision as of 09:24, 23 June 2020
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A corporate action with regard to a security is an extraordinary event which changes the capital structure of the organisation — for example, a merger, takeover, rights issue, stock split, restructuring — which obliges a shareholder to make a vote or exercise an election of some kind. To be distinguished from a normal annual general meeting —part of the peacetime governance of any publicly traded company, which, though giving rise to opportunities to vote, is not regarded as a corporate action as such.
Corporate actions can get tasty in the context of a stock lending arrangement, if the Borrower is short the security in question on the record date.
See also
- Corporate actions under the 2010 GMSLA
- Merger Event in the 2002 ISDA Equity Derivatives Definitions