What is Corporate Behavior?

Corporate behavior is an event initiated by a listed company that may have a direct or indirect impact on shareholders. For example, in respect of company shares. Dividend A declaration may have a direct financial impact on shareholders, while a stock split to enhance the simplicity of share trading may have an indirect impact on shareholders.

Where have you heard of corporate behavior?

As an investor, your financial advisor may keep you informed of the impact the company's actions may have on your portfolio. Broker websites usually contain a list of company behaviors that you may need to know about.

Information you need to know about company behavior...

Corporate actions are usually approved by the company's board of directors and authorized by shareholders.

Dividend, stock splits, acquisitions and spin-offs are common corporate actions. Mergers, takeovers and sales of business units are the three main categories of corporate behavior.

By understanding company behavior, you can gain a deeper understanding of the company's financial affairs and the impact of specific actions on the stock price. This information helps you decide whether to buy or sell shares of the company in question.