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What are Rights Issue?
A Rights Issue is a way for a company to raise funds by offering new shares to its existing shareholders. In a rights issue, shareholders are given the right to buy additional shares of the company at a fixed price, usually lower than the market ...
What to do if clients profit and loss report seems to be incorrect?
The P & L can be incorrect only under the following circumstances : Corporate actions - such as Bonus, Splits, Rights issue, Merger, Spin-Offs, Buyback. Discrepant quantities not entered or entered incorrectly for off-market transfer of shares and ...
Who is eligible for bonus shares?
Shareholders who hold the company’s shares in their demat account on or before the record date are eligible to receive bonus shares.
What is Corporate Action?
Corporate actions are actions taken by a company that directly impact the shareholders' value. These events bring material changes to a company and affect its stakeholders. Corporate actions can be monetary, such as dividends, or non-monetary, such ...
How do specific corporate actions impact F&O?
A) Dividends Dividends are payments made by a company to its shareholders. • If the dividend is less than 2% of the stock price → No adjustment • If the dividend is 2% or more (extraordinary dividend) → Strike price and futures base price may be ...