Rf and Rights issue: Difference between pages

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imported>Doug Williamson
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'Rf' is an abbreviation for the theoretically risk free rate of investment returns which can be earned on hypothetical investments, considered to be risk-free for modelling purposes.
A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding.  


For example, in the Capital asset pricing model.
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.
 
 
====Interest rate benchmarks====
 
The term 'risk-free rates' is also used in the context of interest rate benchmarks.
 
This type of 'risk-free rate' is more often abbreviated 'RFR'.




== See also ==
== See also ==
* [[Benchmark]]
* [[Bonus issue]]
* [[Capital asset pricing model]]
* [[Dividend irrelevancy theory]]
* [[LIBOR]]
* [[Headroom]]
* [[Risk-free rate of return]]
* [[Nil paid]]
* [[Risk-free rates]]
* [[Option premium]]
* [[Pre-emption rights]]
* [[Theoretical ex-rights price]]
* [[Trombone]]


[[Category:Corporate_financial_management]]
[[Category:Corporate_finance]]

Revision as of 10:33, 16 March 2014

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.


See also