Rights Issue
Content
Definition
A Rights Issue is a corporate action to raise equity capital, where existing shareholders are given the right to subscribe to new shares at a discount before they are offered to the public.
Usage and Context
A rights issue gives existing shareholders the opportunity to buy additional shares at a discounted price to raise funds.
Frequently asked questions
- What is rights issue in corporate action? A rights issue gives current shareholders the chance to buy more shares at a discounted price before the public can buy them.
- What is a rights issue to raise equity? A rights issue allows a company to offer additional shares to existing shareholders at a discounted price to raise capital.
- What is the meaning of right issue? A rights issue allows current shareholders to buy more shares at a lower price before they’re available to the general public.
Benefits
A rights issue gives existing shareholders the chance to buy new shares at a discount to raise capital.
Conclusion
A rights issue allows existing shareholders to buy additional shares at a lower price.
