what are the features of issue of shares?
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Answer:
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Explanation:
The existing shareholders can trade the rights to other interested market participants until the date at which the new shares can be purchased. The rights are traded in a similar way as the normal equity shares. The amount of rights issue to the shareholders is usually at a proportion of existing holding.
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╔┓┏╦━━╦┓╔┓╔━━╗╔╗ ║┗┛║┗━╣┃║┃║╯╰║║║ ║┏┓║┏━╣┗╣┗╣╰╯║╠╣ ╚┛┗╩━━╩━╩━╩━━╝╚╝ . . .
Explanation:
The rights shares allow preferential treatment to existing shareholders, where existing shareholders have the right to purchase shares at a lower price on or before a specified date.
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