Dividends
When a company distributes a portion of its profits to its shareholders as a cash dividend or additional shares.
Rights Issues
When a company offers its existing shareholders the opportunity to purchase additional shares at a discounted price.
Stock Splits
When a company divides its existing shares into multiple shares. For example, a 2-for-1 stock split would double the number of shares outstanding while reducing the price per share by half.
Stock Buybacks
When a company repurchases its own shares from the market, reducing the number of shares outstanding and potentially increasing the value of remaining shares.
Mergers and Acquisitions
When two or more companies combine their operations or when one company acquires another company. This can involve the exchange of shares or cash payments.
Bonus Issues
When a company issues additional shares to its existing shareholders without requiring any payment, usually based on the number of shares they already hold.
Spin-offs
When a company separates one of its business divisions into a separate independent entity, with the new entity having its own shares and ownership structure.
Dividend adjustments are important considerations for traders and investors, especially those who engage in trading stocks and CFDs. Dividend adjustments occur when a company pays out dividends to its shareholders, and these adjustments can have an impact on the underlying stock or CFD positions.
The ex-dividend date* refers to the date on which a stock no longer carries the entitlement to receive dividends. Investors who purchase the stock after this date will no longer qualify for the corresponding dividend distribution.
