Corporate Actions : A Guide to Securities Event Management

by Michael Simmons; Elaine Dalgleish

• ISBN13: 9780470339244
• ISBN10: 0470339241
• Format: eBook
• Copyright: 2008-05-01
• Publisher: Wiley

Summary

Corporate actions are events that affect large corporations through to the individual investor - even those that own a single-share! All organizations that hold equity and debt securities for themselves and/or on behalf of others are affected when the issuer of a security announces an income or corporate action event. The successful management of the array of different event types requires understanding of the inherent risks, and tight controls at critical points in the event lifecycle. The management of income and corporate action events are important and essential parts of the securities industry business. Written by authors with many years experience within this sector, Corporate Actions: A Guide to Securities Event Management sets out to demystify the subject and provides a thorough, step-by-step introduction to corporate actions and income events. Corporate Actions is a comprehensive source for understanding a major component of operational processing. The individual components and their relation to each other within the corporate actions lifecycle are explained in detail, through which the reader will gain a clear and thorough understanding of the lifecycle together with potential processing risks and the strategies to mitigate Corporate Actions is essential reading for all those involved in the securities industry, from new recruits to those involved in both the day-to-day operations process and those within executive management. It will also prove invaluable to those providing consultancy and software solutions to the securities industry. Corporate Actions is the first major work on this subject. Many people within the securities industry have heard of corporate actions - many people know they can be highly risky - many organizations have lost vast sums of cash in attempting to process them - very few understand them!

Table of Contents

Introduction

About the Authors

Introductory Elements

Basic Corporate Action Concepts

Event Description and Classification

The Securities (and Corporate Actions) Market Place

Static Data

Securities Position Management

Mandatory Events

Overview of the Generic Corporate Action Lifecycle

Straight Through Processing

Event Terms Capture and Cleansing

Determining Entitlement

Communication of Event Information

Calculation of Resultant Entitlements

Passing of Internal Entries

Collection/Disbursement of Resultant Entitlements

Updating of Internal Entries

Examples of Mandatory Events

Events with Elections

Concepts of Events with Elections

Management of Mandatory with Options Events

Management of Voluntary Events

Multi-Stage Events

Concepts of Multi-Stage Events

Management of a Rights Issue

Example of a Rights Issue

Concepts of Takeover Events

Management of Takeover Events

Taxation

Concepts and Management of Taxation

Management of Income Tax

Issuer Notices

Concepts and Management of Issuer Notices

Objectives and Initiatives

Objectives and Initiatives

Glossary of Terms

Index

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