Corporate Action

                                        When any public company issued some securities and it initiate an even regarding that securities is called Corporate Action. Dividend is one of the types of CA.
The primary reasons for CA
• Return profit to the shareholders
• Influences the share prices
• Corporate restructuring-
Ways of announcing CA
Dividend: Here dividend is the classical example to CA. Company will distribute the profit to the entire share holder. Equity price in the secondary market get adjust because of this CA but as point of the company it is positive sentiment in the secondary market for their equity.
Bonus: company performs well and they want to share the profit to the share holders in the form equity. Equity price will adjust in the market because of this CA but company prospective liquidity will increase in the secondary market. There is an issue here, some share holder are not qualified to take the bonus so they will accrue the loss.
Stock splitting: increase or decrease the number of shares in the market to increase or decrease the price of the stock market
Spinoffs: Are an example of a corporate action where a company breaks itself up in order to focus on its core competencies.                                                                                                                                    
      Following List shows how many ways of announcing CA

• Cash Dividend,
• Optional Dividend,
• Stock Dividend,
•  Stock Split,
• Spin Off,
•  Acquisition,
•  Rights Offering,
•  Debt Redemption,
•  Bonds Exchange,
•  Bankrupts,
• Debt Repurchase,
• Reclassification,
• Buyback Offer,
• Pay in Kind.

An Option -One of The Derivative

An option is a contract to buy or sell a specific financial product officially known as the option's underlying instrument or underlying interest.It has an expiration date. When an option expires, it no longer has value and no longer exists.
Options come in two varieties, calls and puts, and you can buy or sell either type.
Buying and Selling
If you buy a call, you have the right to buy the underlying instrument at the strike price on or before the expiration date. If you buy a put, you have the right to sell the underlying instrument on or before expiration. In either case, as the option holder, you also have the right to sell the option to another buyer during its term or to let it expire worthless.

When you sell a call as an opening transaction, you're obligated to sell the underlying interest at the strike price, if you're assigned. When you sell a put as an opening transaction, you're obligated to buy the underlying interest, if assigned.
At a Premium
When you buy an option, the purchase price is called the premium. If you sell, the premium is the amount you receive. The premium isn't fixed and changes constantly - so the premium you pay today is likely to be higher or lower than the premium yesterday or tomorrow.

Investment Banking

Raising the capital to the Corporation or Government by underwriting and acting as agent in the issuance of the securities.it also assists companies involved in mergers and acquisitions, divestitures.
An investment Bank is spited into so called Front-office ,middle office and Back Office.
Front-Office deals the sales and trading,research on the market
Middle-Office deals with the Risk Management,Corporate Treasury ,Financial Control and Corporate sategy
Back-Office deals with the Operation and technologies
                  For Corporations investment bankers offers when and how to place their investments in the market .Investment Bank mainly to satisfy both issuers and investor.Here investors are expecting the high returns on their investments .In other side Issuers are expecting more capital with lowest interest rates for a long time.