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Dividends, bonus, splits, rights issue, and buybacks.
Corporate actions are decisions by a company that affect its shareholders. These include dividends (profit sharing), bonus shares (free shares), stock splits (breaking shares into smaller units), rights issues (chance to buy more at discount), and buybacks (company repurchases its own shares).
Corporate Actions Explained
| Action | What Happens | Real Example |
|---|---|---|
| Dividend | Company pays per-share profit | TCS paid ₹75 final dividend (2024) |
| Bonus | Free additional shares to existing holders | Reliance 1:1 bonus (2017) |
| Stock Split | Share divided into smaller units | MRF 10:1 split (face value ₹10 to ₹1) |
| Rights Issue | Buy more shares at discount | Bharti Airtel rights at ₹535 (2020) |
| Buyback | Company buys back its own shares | TCS ₹18,000 Cr buyback (2022) |
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