But first, what exactly is a corporate action? And why does it matter?
According to Investopedia,
A corporate action is any activity that brings material change to an organization and impacts its stakeholders, including shareholders, both common and preferred, as well as bondholders.
Photo: Hyflux AGM
Corporate actions includes:
Stock Split and reverse split (consolidation) Spin-Offs Dividend Payouts Mergers and Acquisitions Bonus Issue Rights Issue Share buybacks IPO
Corporate actions are important source of indicators for the retail investors to monitor the company’s direction and effectively, the share price. There are some rules that investors and traders have to take note of, according to Li Guang Sheng (a top tier remisier and veteran community member):
Officers and employees of the Company two weeks before the announcement of the Company’s financial results for the first three quarters and one month prior to the announcement of the full year results (“Black-out Period”).