Rights issue: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Amend reference to law in the UK.) |
imported>Doug Williamson (Align with course materials - linked to placing) |
||
| Line 12: | Line 12: | ||
* [[Nil paid]] | * [[Nil paid]] | ||
* [[Option premium]] | * [[Option premium]] | ||
*[[Placing]] | |||
* [[Pre-emption rights]] | * [[Pre-emption rights]] | ||
* [[Theoretical ex-rights price]] | * [[Theoretical ex-rights price]] | ||
Revision as of 14:58, 15 July 2015
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 law in the UK, pre-emption rights.
This means that they generally have first refusal on the purchase of any new equity shares.
