Corporate Actions by Public Companies--What You Should Know

When you invest in stocks of publicly traded companies, something comes with the package--corporate actions, which may affect a company's stock and, therefore, its shareholders. Corporate actions can range from making a change to a company's name to issuing a dividend or making a major restructuring of the company through a merger or bankruptcy.

Some of these actions, such as a merger or bankruptcy, might make headlines if they involve large well-known companies. Other changes, such as a stock symbol change or a dividend payout, might not make headlines, but are important for investors to be aware of.

Here are six common types of corporate actions and how they might impact your investments.

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Source Fool.com