Corporate Actions

In addition to your class tuition and study materials, you will receive the following:


Complimentary e-learning module
Other Extras

• Certificate of attendance

Level: Introductory


Synopsis:
This course will provide an understanding of Corporate Actions; what they are, where they originate and why they happen. It will cover critical factors and the alternative choices for the investor as well as relevant calculations and the timescales involved.


At the end of the course participants will be able to: Explain the key roles of the participants in a corporate action . Know the tax implications of an action . Be familiar with the life cycle of a event . Gain an understanding of the tax implications of a corporate action . Know the reason why holders make their choices in a voluntary event . Know why an issuer undertakes an action . Understand the different types of corporate action .


Prerequisites:
None, however, some knowledge of the basic features of securities may be beneficial


Suitable For:
Those within operations with exposure to corporate actions


Bonds

• Types, functions and characteristics
• Coupons and redemptions (including partial redemptions)
• Coupon accrued and coupon payments
• Basic calculations
• Coupon bought and sold - key variables

Equities

• Types, functions and characteristics
• Role of register
• Nominee names
• ADRs and GDRs

Life cycle of a corporate action

• Information gather and data scrubbing
• Event entitlement
• Response gathering and instruction
• Payment claims
• Post event reconciliation

Corporate actions mandatory

• Dividends
• Bonds issues
• Splits
• Coupons
• Redemptions payments
• Delayed / defaulting securities
• Mergers

Corporate actions voluntary

• Right issues
• Capital repayments
• Class actions
• Conversions - depository receipts, bonds to shares, preference to ordinary shares
• Warrants
• Takeovers
• Tender offers

Income collection

• Dividends - entitlement, market claims, actual/contractual
• Cash dividends - DRIPS
• Stock optional dividends - effect on income, effect on capital

Taxation

• UK residents and overseas residents
• Withholding tax
• Double taxation agreements
• Tax reclaims

Proxy voting

• Types of company meeting - AGM, EGM, Special
• The proxy instruction process

Participants in corporate actions

• Issuers
• Lead managers
• Custodians
• Trustee
• Tender agents
• Paying agents
• Conversion agents
• Central Securities Depository
• Clearing House