Rights issue: Difference between revisions

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imported>Doug Williamson
(Link with Theoretical ex-rights price)
imported>Doug Williamson
(Amend reference to law in the UK.)
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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 law, pre-emption rights.  This means that they generally have first refusal on the purchase of any new equity shares.
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.





Revision as of 16:50, 11 March 2015

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.


See also