Daily Point 2286 - Rights Share

 

The Banking Tutor 

Daily Point 2286 

Rights Share 

A Right Share is an offer to existing shareholders to buy additional shares at a discounted price, allowing the company to raise capital without diluting the ownership stake of its current investors. These shares are offered in a specific ratio (e.g., one new share for every five you own) and shareholders have the choice to accept, reject, or sell their rights entitlement. 

Sekhar Pariti

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