Rights Issue Premium
Rights Issue Premium refers to the additional amount that shareholders are required to pay to exercise their rights in a rights issue, over the par value of the shares.
Benefits
Rights issue premium is the extra amount paid by shareholders to exercise their rights in a rights issue.
Frequently Asked Questions
What is rights issue premium?
Rights issue premium is the amount shareholders pay above the nominal value of shares when they buy new shares in a rights issue.
What is a rights premium?
A rights premium is the extra value or cost linked to the rights offered in a rights issue, reflecting the advantage of purchasing shares at a lower price.
What is the meaning of right issue?
A rights issue gives existing shareholders a chance to purchase more shares at a discount.
Key Takeaway
Rights issue premium is the extra amount shareholders pay above the base price in a rights issue.