COURSE OVERVIEW

The world of corporate actions is usually regarded within financial institutions as a mystery zone requiring expert knowledge in order to comprehend what lies beneath. In reality, like much other features of securities processing, corporate actions work to a set of logical guidelines which, if followed, will result in controlled and risk-free processing.

What are corporate financial actions? A corporate action is any action that produces material change to an organization and affects its stakeholders, involving shareholders, both common and chosen, together with bondholders.

This Zoe course will empower the participants in understanding all aspects of Corporate Actions, including Voluntary, Mandatory and Mandatory with Choice Corporate Actions.

Course Objectives

On successful completion of Corporate Actions Course, participants shall be able to:

• Know the reasons for corporate actions (both equity and debt)
• Learn and apply the sequential steps in processing corporate actions
• Manage and cover the different risks, risk mitigation and processing efficiency of corporate actions

TRAINING METHODOLOGY

This collaborative Corporate Actions Course, will comprise the following training methods:

• Lectures
• Seminars & Presentations
• Group Discussions
• Assignments
• Case Studies & Functional Exercises

Zoe Talent Solutions follows ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

On successful completion of the Corporate Actions Course, participants shall be able to benefit their organization in the following ways:

• Comprehend the DTCC & OMGEO updates for Corporate Actions
• Know the new Proxy Concept Release
• Understand trade and settlement cycles, plus how they affect Corporate Actions
• Explain the reasons why Corporate Actions cause Fails and consider how to create an environment to avoid future fails
• STP implications and automated exception handling for Corporate Action Fails
• Assuming and shouldering responsibility for Fails and Risk mitigation

Personal Benefits

Successful completion of Corporate Actions Course, shall benefit participants in the following ways:

• Know Trade Processing and Trade matching against Corporate Actions
• Learn Corporate Action Arbitrage
• Appreciate the new industry initiatives currently happening in our industry
• Comprehend the concept and use of Actual vs. Contractual settlement of Corporate Actions
• Study the issues and financial impact of Corporate Action Fails – Cost Center vs. Profit Center
• Learn how the “new” Operations Risk and BASEL III requirements result Corporate Actions processing

WHO SHOULD ATTEND?

This course will be beneficial to those who are new, recent or potential recruits to Corporate Actions departments. It may also be useful to Front Office staff who require a greater understanding of Corporate Actions or those in IT roles seeking to acquire further understanding of the businesses they support.

If you desire to gain a good understanding of a range of corporate actions, the processes, the jargon and knowledge of the potential risks and costs to the business of making errors when handling corporate action events, then this course is for you.

COURSE OUTLINE

MODULE 1:  Understanding Corporate Actions

• Different categories of Corporate Actions
• Learn why companies undertake corporate actions
• How different Corporate Actions affect the share prices of the company?
• Effects on the company itself
• Understanding Floating Stock

MODULE 2:  Dividends and Share Issue / Share Buyback

• Cash Dividends
• Bonus Issue
• Rights Issue
• Understanding Share Buyback

MODULE 3:  Stock Split

• Normal Split
• Reverse Split
• Reasons behind Stock splits
• Effect on Share Prices
• Example of Stock splits

MODULE 4:  Spin Off

• What is Spin off?
• Why Spin off?
• Examples of successful spin-offs

MODULE 6: Tender Offer

• What is Tender Offer?
• Purpose of Tender Offer
• Advantages & Disadvantages
• Real-world Example of Tender Offer

MODULE 7: Merger & Acquisition

• Key Difference between Merger & Acquisition
• Different types of Mergers
• Horizontal
• Vertical
• Conglomerate Merger
• Market Extension
• Product Extension Merger

MODULE 8: Case Studies on Merger & Acquisition

• Successful Mergers
• Failed Mergers