MODULE · STEP 1 OF 8

Spot the corporate action

WATCHEXPLORE

Every action leaves a footprint

Watch all five.

You've met five corporate actions. Each one changes your numbers in its own way. Watch the pattern for each.

Lesson notes

A written summary of everything covered in this interactive lesson.

Every action leaves a footprint

Watch all five.

You've met five corporate actions. Each one changes your numbers in its own way. Watch the pattern for each.

Three questions crack most cases

  • 1 · Did money move? cash in or cash out — Cash came **to** you and your share count didn't change: a **dividend**. Cash went **from** you for extra shares: a **rights issue**.
  • 2 · More shares for free? then check the face value — Face value unchanged: a **bonus**. Face value smaller: a **split**.
  • 3 · Fewer shares in the company? yours unchanged — The company's total share count fell while yours stayed the same: a **buyback**.

**Remember:** bonus and split look identical in your account. The face value tells them apart.

Same holding, five actions

Tap each action.

You own **100 shares** at **₹600**, face value **₹10**. Pick an action and read its footprint.

Example figures; after each action the market sets the actual price.

Check — Question 4 of 4

Match each footprint to its action.

What you now know

  • Dividend: cash in, shares unchanged, price drops by about the dividend.
  • Bonus: more shares at a lower price, face value unchanged, no cash.
  • Split: more shares at a lower price, face value smaller, no cash.
  • Rights issue: you pay to get extra shares at a discount.
  • Buyback: the company's share count falls; your slice grows if you keep your shares.