Appraisal rights are a statutory remedy available to minority stockholders who object to certain extraordinary actions taken by a corporation, such as a merger. These rights require the corporation to repurchase the stock of dissenting stockholders at a price equivalent to its value immediately before the event.
Bonus shares are additional shares issued to existing shareholders of a company at no extra cost, based on the number of shares that a shareholder already owns.
Cum rights refer to trading shares that include the rights or entitlements attached to securities, typically related to dividends or other special benefits. Investing in cum rights allows shareholders to receive upcoming dividends or participate in other corporate actions.
The date on which a corporation uses its list of stockholders to mail a dividend check. It is usually two days after the ex-dividend date. Also called record date.
A free issue, also known as a scrip issue, is a process wherein a company issues additional shares to its existing shareholders without any extra cost, based on the number of shares that shareholders already own.
The record date, also known as the date of record, is a critical date set by a company upon which shareholders must be on the corporation's books in order to receive the benefits of a corporate action, such as a dividend payout or stock split.
A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases, the value of each share is reduced proportionately, so the total market capitalization remains the same.
