What is a rights issue?
A rights issue is an issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within a fixed time period.
In a rights offering, the subscription price at which each share may be purchased is generally at a discount to the current market price. Renounceable Rights are often transferable, allowing the holder to sell them on the open market.
(No Ratings Yet)
Loading...
