Non-transferable risk and Rights issue: Difference between pages

Revision as of 06:53, 23 August 2019

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.

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-Non-transferable risks are risks which must be borne by an organisation.
+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.
-Non-transferable risks might be avoided or accepted and retained or reduced as appropriate. In the case of non-transferable business risks (which by definition are not avoided) it is important that the firm has a distinctive competence in the relevant areas.
+This means that they generally have first refusal on the purchase of any new equity shares.
-For example, a pharmaceutical company's non-transferable risks would include the risk that failure to gain approval for use of a new drug means that the research and development costs have been wasted.
+== See also ==
+* [[Bonus issue]]
+* [[Dividend irrelevancy theory]]
+* [[Headroom]]
+* [[Initial public offering]]
+* [[Nil paid]]
+* [[Option premium]]
+*[[Placing]]
+* [[Pre-emption rights]]
+* [[Theoretical ex-rights price]]
+* [[Trombone]]
+[[Category:Accounting,_tax_and_regulation]]
-== See also ==
+[[Category:The_business_context]]
-*[[Transferable risk]]
+[[Category:Corporate_finance]]
+[[Category:Investment]]
+[[Category:Long_term_funding]]
+[[Category:Financial_products_and_markets]]