The BBA(Financial Services) Department organized a Guest Lecture on 26th November, 2020 on ‘Stock Market Reactions to Corporate Actions’ for TY BBA(FS) students as part of the Corporate Finance course. The resource person was Mr. Ganesh Kothatha, Founder, Wealth Doctors, Margao, Goa.
The resource person started the session with a short video on “Don’t be Rich but be Happy Rich”. The video conveyed an important message for all investors viz. the investor should be satisfied with his/her financial diversification rather than being just financially sound. The Resource Person then elaborated upon the various terminologies associated with corporate finance such as dividend, capital, profit, stock, investments, analysis, etc. He also discussed about the how companies’ decisions and actions have an impact on the share price of the company.
Mr. Kothatha explained the buyback of shares and focused on various reasons why companies opt for buyback of shares. He highlighted that almost fifteen public limited companies like TCS, Tech Mahindra, ONGC, etc. have proceeded for buyback of shares in the financial year 2019-2020. He mentioned that when companies buy back their shares, it creates confidence among the investors.
Corporate action also includes shares splits, and the Resource Person explained the concept using an illustration wherein he demonstrated how the number of shares issued changes with a forward stock slip and a reverse stock split, where the share capital of the company remains constant.
41 students attended the session, which ended at around 12:00 noon with a question and answer session.
