Rights Issue
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.
Benefits
A rights issue gives existing shareholders the chance to buy new shares at a discount to raise capital.
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.
Key Takeaway
A rights issue allows existing shareholders to buy additional shares at a lower price.