What Are Corporate Actions? In language, corporate actions mean an action taken by a company or a corporate entity that lays a direct impact on a company’s share price. The Board of directors of the company initiates these actions which are approved by its shareholders. The majority of retail simply buys stocks on the announcement of a corporate action, which is wrong. Let’s dig deep into the realm of corporate actions as you would learn in a stock market institute in Noida Types of Corporate Action Bonus Issue Let’s understand bonuses through an example: If someone had bought 1,000 shares of Infosys in 2003, and not invested thereafter, his current shareholding is 16,000 shares of Infosys. Surprised? The number of shares increased because of the bonus shares issued by the company in the past 20 years. A bonus issue is a share given as a reward to existing shareholders to distribute gathered reserves instead of giving dividends. This also makes the share price a...