{"id":26245,"date":"2026-04-02T11:50:31","date_gmt":"2026-04-02T11:50:31","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=26245"},"modified":"2026-04-02T11:50:49","modified_gmt":"2026-04-02T11:50:49","slug":"how-do-corporate-actions-impact-the-stock-price","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/how-do-corporate-actions-impact-the-stock-price\/","title":{"rendered":"How Do Corporate Actions Impact the Stock Price?"},"content":{"rendered":"\n<p>Corporate actions don&#8217;t just affect your share count, most of them have a direct and predictable effect on the stock price as well.<\/p>\n\n\n\n<p><strong>Bonus Issue<\/strong> The stock price drops proportionally on the ex-date. If a company announces a 1:1 bonus, the price adjusts to roughly half. Your total holding value stays the same just more shares, lower price per share.<\/p>\n\n\n\n<p><strong>Stock Split<\/strong> Works the same way as a bonus issue in terms of price impact. A 2:1 split halves the price and doubles your share count. No change in overall value on the day of adjustment.<\/p>\n\n\n\n<p><strong>Dividend<\/strong> On the ex-dividend date, the stock price typically drops by approximately the dividend amount per share. This is a standard market adjustment and you receive the dividend in cash, and the price reflects that outflow from the company.<\/p>\n\n\n\n<p><strong>Rights Issue<\/strong> Announcing a rights issue can put mild downward pressure on the stock price, since new shares are being issued at a discount. The extent depends on the size of the issue and how the market views the purpose behind it.<\/p>\n\n\n\n<p><strong>Buyback<\/strong> Generally seen as a positive signal. Reducing the number of shares in circulation can support or push up the stock price, especially if the market believes the company is undervalued.<\/p>\n\n\n\n<p><strong>Merger or Acquisition<\/strong> Price impact here varies significantly. The target company&#8217;s stock often rises toward the offer price. The acquiring company&#8217;s stock may rise or fall depending on how the market views the deal terms and the premium being paid.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2855],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26245"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=26245"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26245\/revisions"}],"predecessor-version":[{"id":26247,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26245\/revisions\/26247"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=26245"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=26245"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=26245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}