Right Issue

                  

#TermoftheDay - Rights Issue

Dharma says Rights issue is when a company issues its existing shareholders a right to buy additional shares in the company. Company will offer more shares to its shareholders to raise extra money for the company. 

Vikas explains Rights issue - company gives the rights to the existing shareholders to buy more/new shares. The company receives more capital and the no of shares in market also increases.

Yogesh Sharma: An issue of shares offered at a special price by a company to its existing shareholders in proportion to their holding of old shares.

Tejas Vora: Right issue means company gives a right to buy shares in some proportion of holding current quantity of shares. The price of this right shares is at discount rate.

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