Periodic rate of interest and Rights issue: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Spacing 21/8/13)
 
imported>Doug Williamson
(Classify page.)
 
Line 1: Line 1:
The total interest for any given period - for example 0.014% per day.
A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding.  


The given period may be less than one year, equal to one year, or more than one year.
Existing shareholders have, under law in the UK, pre-emption rights.


Another example of a periodic rate of interest would be 12.36% per two years.
This means that they generally have first refusal on the purchase of any new equity shares.


Not to be confused with the ''effective annual rate'' and the ''nominal annual rate'', which are different.


== See also ==
* [[Bonus issue]]
* [[Dividend irrelevancy theory]]
* [[Headroom]]
* [[Initial public offering]]
* [[Nil paid]]
* [[Option premium]]
*[[Placing]]
* [[Pre-emption rights]]
* [[Theoretical ex-rights price]]
* [[Trombone]]


== See also ==
[[Category:Accounting,_tax_and_regulation]]
* [[Compound interest]]
[[Category:The_business_context]]
* [[Daily rate]]
[[Category:Corporate_finance]]
* [[Effective annual rate]]
[[Category:Investment]]
* [[Nominal annual rate]]
[[Category:Long_term_funding]]
* [[Periodic interest]]
[[Category:Financial_products_and_markets]]
* [[Quarterly rate]]
* [[Semi-annual rate]]
* [[Simple interest]]

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.


See also