Rights issue: Difference between revisions
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A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding. | A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding. | ||
Existing shareholders have, under UK | |||
Existing shareholders have, under law in the UK, pre-emption rights. | |||
This means that they generally have first refusal on the purchase of any new equity shares. | |||
== See also == | == See also == | ||
* [[An introduction to debt securities]] | |||
* [[Bonus issue]] | * [[Bonus issue]] | ||
* [[Dividend irrelevancy theory]] | * [[Dividend irrelevancy theory]] | ||
* [[Headroom]] | * [[Headroom]] | ||
* [[Initial public offering]] | |||
* [[Nil paid]] | * [[Nil paid]] | ||
* [[Open offer]] | |||
* [[Option premium]] | * [[Option premium]] | ||
*[[Placing]] | |||
* [[Pre-emption rights]] | * [[Pre-emption rights]] | ||
* [[Theoretical ex-rights price]] | |||
* [[Trombone]] | * [[Trombone]] | ||
[[Category: | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Financial_products_and_markets]] |
Latest revision as of 08:24, 1 June 2023
A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding.
Existing shareholders have, under law in the UK, pre-emption rights.
This means that they generally have first refusal on the purchase of any new equity shares.