Rights issue: Difference between revisions
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imported>Doug Williamson (Aligned with course materials - added link to Initial public offering) |
imported>Doug Williamson (Layout.) |
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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 law in the UK, pre-emption rights. | Existing shareholders have, under law in the UK, pre-emption rights. | ||
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== See also == | == See also == | ||
* [[An introduction to debt securities]] | |||
* [[Bonus issue]] | * [[Bonus issue]] | ||
* [[Dividend irrelevancy theory]] | * [[Dividend irrelevancy theory]] | ||
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* [[Initial public offering]] | * [[Initial public offering]] | ||
* [[Nil paid]] | * [[Nil paid]] | ||
* [[Open offer]] | |||
* [[Option premium]] | * [[Option premium]] | ||
*[[Placing]] | *[[Placing]] | ||
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* [[Trombone]] | * [[Trombone]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | [[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.