GLOSSARY

VOLUNTARY CORPORATE ACTION

1 June 2016 By PDSNET

A corporate action which requires a decision from shareholders - such as a rights issue. With a rights issue, shareholders must decide whether to take up the rights or not. If they do not take up the rights by the take-up date then the rights cease to exist. They could also decide to sell their rights in the open market before the take-up date. An example of an involuntary corporate action would be the payment of a cash dividend - where no decision is required from the shareholder.

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