Corporate actions are events initiated by a company that affect its shareholders and the overall structure of the company. These actions can include activities like stock splits, dividends, mergers, and acquisitions. Each of these events can impact the value of shares and the rights of shareholders. When a corporate action occurs, it is essential for investors to understand how it may influence their investments. For example, a dividend payout can provide income to shareholders, while a stock split can make shares more affordable. Overall, corporate actions play a significant role in the financial landscape of a company.