Types of Corporate Actions Every Investor Should Know
Author: Maks Artemov
Dear Clients and Partners,
The stock value is influenced not only by economic, political, or geopolitical events but corporate as well. What are corporate events and which of them investors might find interesting?
We should note that some actions from the list below can have a rather insignificant influence on the stock value, while the others, on the other hand, may force it to plummet or skyrocket.
Financial statement release
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What is a distinctive feature of an NFT?
Companies publish their financial statements over the previous reporting period. Statements are usually published in the morning before the trading session starts or in the evening after it is over. This is done to avoid significant surges in prices.
After financial statements are released, investors and traders have enough time to prepare for trading and make decisions on their further activities. As a rule, trading sessions after financial statement releases are opened with a price gap. Periods for reports are the following:
Meetings of the board of directors
Just like financial statements, meetings of the board of directors also have a significant influence on stocks. During the meeting, a lot of important decisions are made, such as Ex-dividend date, dividend distribution, mergers and acquisitions, stock splits. Boards of directors discuss companies’ current state and their future.
The date and agenda are usually reported at least 3 days before the meeting, while the results are published after 3 days it was finished.
Dividend distribution
On this day, traders or investors receive dividends payable to their accounts. The sum depends on the decision made during the meeting of boards of directors and is calculated based on the company’s financial performance. Dividends can be paid not only when the company performed well but also when its financial statement is negative.
Closing thoughts
It’s quite difficult to keep track of all corporate actions when looking for a company to invest in but one can choose the most important of them and focus on them. It often happens that the price of shares may rise or fall before the ex-dividend date or dividend distribution. Investors can monitor the payment schedules of different companies and make an investment decisions based on them.
Read more at R Blog - RoboForex
Sincerely,
RoboForex team
Author: Maks Artemov
Dear Clients and Partners,
The stock value is influenced not only by economic, political, or geopolitical events but corporate as well. What are corporate events and which of them investors might find interesting?
We should note that some actions from the list below can have a rather insignificant influence on the stock value, while the others, on the other hand, may force it to plummet or skyrocket.
Financial statement release
A Non-Fungible Token is a digital unit, which certifies the right of ownership and uniqueness of digital assets. An NFT can also be created for things in the real world.
What is a distinctive feature of an NFT?
Companies publish their financial statements over the previous reporting period. Statements are usually published in the morning before the trading session starts or in the evening after it is over. This is done to avoid significant surges in prices.
After financial statements are released, investors and traders have enough time to prepare for trading and make decisions on their further activities. As a rule, trading sessions after financial statement releases are opened with a price gap. Periods for reports are the following:
- Quarterly statements
- Half year statements
- Annual statements
Meetings of the board of directors
Just like financial statements, meetings of the board of directors also have a significant influence on stocks. During the meeting, a lot of important decisions are made, such as Ex-dividend date, dividend distribution, mergers and acquisitions, stock splits. Boards of directors discuss companies’ current state and their future.
The date and agenda are usually reported at least 3 days before the meeting, while the results are published after 3 days it was finished.
Dividend distribution
On this day, traders or investors receive dividends payable to their accounts. The sum depends on the decision made during the meeting of boards of directors and is calculated based on the company’s financial performance. Dividends can be paid not only when the company performed well but also when its financial statement is negative.
Closing thoughts
It’s quite difficult to keep track of all corporate actions when looking for a company to invest in but one can choose the most important of them and focus on them. It often happens that the price of shares may rise or fall before the ex-dividend date or dividend distribution. Investors can monitor the payment schedules of different companies and make an investment decisions based on them.
Read more at R Blog - RoboForex
Sincerely,
RoboForex team