Navneet's View Point: Right Shares ?

Artists from Taiwan, dressed as Terracotta, move slowly in a Hong Kongshopping mall on Saturday, July 7, 2007.
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Issue of Rights An issue of securities to the existing shareholders with the right resting on the investor either to accept or reject the offer.A corporation/company usually offers a rights issue to the existing shareholders an option to buy new shares of the company at a predetermined price usually at a discount to the existing market price in a pre fixed ratio. A rights issue will be of the form, issue of x number of shares to the existing shareholders at a price of y per share in the ratio of n shares for every y shares held as on date D.
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