Inversion and Pre-emption rights: Difference between pages

Revision as of 03:43, 19 May 2016

The rights of a shareholder to have the first refusal on any new shares in the company as they become available.

In the UK these rights are enshrined in company law.

Outside the UK pre-emption rights may or may not be recognised in law.

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+The rights of a shareholder to have the first refusal on any new shares in the company as they become available.
-A term used in foreign exchange rate quotation.
+In the UK these rights are enshrined in company law.
+Outside the UK pre-emption rights may or may not be recognised in law.
-'''Example'''
-Consider the historical FX quote:
-GBP = USD 1.4598 - 1.4602.
-The base currency is GBP.
-This is the currency there is a single unit of, to be exchanged for a variable number of USD.
-The inversion of this FX quote means expressing the same price, but with the other currency as the base currency (USD here):
-USD = GBP ( 1 / 1.4602 ) - ( 1 / 1.4598 )
-USD = GBP 0.6848 - 0.6850.
-In the inverted FX quote, USD is the currency there is a single unit of (to be exchanged for a variable number of GBP).
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-In any market, the reversal of a normal - or commonly expected - relationship.
-For example the situation of an Inverse yield curve, where longer maturities of funds are trading at LOWER yields than shorter-dated maturities (being the opposite of the normally expected upward-sloping relationship).
 == See also ==
-* [[Base currency]]
+* [[An introduction to equity capital]]
-* [[Foreign exchange]]
+* [[Cash box placing]]
-* [[Inverse quote]]
+* [[Rights issue]]
-* [[Inverse yield curve]]
+* [[Shareholders]]
-[[Category:Manage_risks]]
+[[Category:Corporate_finance]]
+[[Category:Compliance_and_audit]]