Question

what is right issue of shares​

Answer 1

Answer:

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. In a rights offering, each shareholder receives the right to purchase a pro-rata allocation of additional shares at a specific price and within a specific period (usually 16 to 30 days).

Answer 2

Answer:

A rights issue is an offer to the existing shareholders to purchase additional shares of the company at a discounted price. The rights issue is made in proportion to the existing holdings and is required to be subscribed within a specific period failing which the rights lapse.

Key features of a rights issue:

• The rights issue is a primary market issue.

• The offer is made to the existing shareholders and not to the general public.

• It is the right of the shareholder and not an obligation to buy the additional shares.

• The rights can be transferred or sold if the existing shareholder is not interested in accepting the offer.

or

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. In a rights offering, each shareholder receives the right to purchase a pro-rata allocation of additional shares at a specific price and within a specific period (usually 16 to 30 days).

Explanation:

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