Corporate action
Market basicsA company event that changes share count or price — split, bonus, dividend, rights, demerger.
In plain terms
When a chart shows a mysterious overnight halving, check announcements before forming a view.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Corporate action adjustment
Fundamental analysisAlso called: Adjusted per-share series
Restating historical per-share figures for bonus issues, splits, rights issues and similar events so that a per-share series remains continuous.
In plain terms
Bonuses and splits divide by a simple factor. A rights issue priced below the market contains an element of bonus, so it needs a computed factor rather than a divisor.
Adjusted price
Technical analysisA price series restated for splits, bonuses and other corporate actions.
In plain terms
Without it, a bonus looks like a 50% crash and every indicator computed across it is nonsense.
Ex-date
Market basicsThe first day a share trades without entitlement to a declared corporate action.
In plain terms
You must own the share before this date. Buying on it gets you nothing.
Record date
Market basicsThe cut-off date determining which shareholders are entitled to a corporate action.
In plain terms
Hold the shares on this date and the entitlement is yours. The price adjusts to reflect what has left.
Registrar and transfer agent
Market basicsAlso called: RTA
The firm a company appoints to maintain its register of members and to process folio-level requests — dividends, transmission, dematerialisation and corporate action entitlements.
In plain terms
For anything held in physical form this is your counterparty, not your broker. A handful of these firms maintain the registers of most listed Indian companies.
AIS
Regulation & taxAlso called: Annual Information Statement
The Annual Information Statement on the income tax portal, listing the transactions the department already holds on record — share sales reported by your broker, dividends and interest received.
In plain terms
Read it before you file rather than after. A mismatch is the commonest trigger for a notice, and it is almost always clerical: an account you forgot about, or a corporate action recorded differently.