Answer / chandan singla

This shares issue only to existing share holders. The new
issue is made to the existing share holders is called as
right share issue.Generally the shares issue lower than
price of the market price of the company's stock.

Answer / jagdish chandra

right issue is the source of additional capital. the issue
of share its existing share holder is called rigt
issue.this share price is lesser than the market price. if
the company rigt issue ratio is 1:4 it means a existing
share holder can by one extra share if he have four share
or every four four share he can buy 1 additional share.

Answer / priya gupta

This is the offer of new shares by company to the existing
shareholders.the shareholder may either accept the offer
for himself or assign a part of all of his right to another.

Answer / krishna pandey

When the company wants to raise it's capital by issueing
shares to the existing share holders that can be purchased
on the ratio of existing owenership of the no of shares is
known as Right Share. It helps to protect the pawer of
existing share holders.

Answer / nitin kumar sharma

Right issue is made to Existing shareholder at a price less than the market price but above the face value .

FOR EXAMPLE: SBI share face vale is Rs.10 and market value Rs. 1000 and they come out with a right issue of one to one share at the rate of Rs.750

NOTE:- A person is alloted a right issue if name is recorded in the record books just before right issue declared.....

Answer / narendra vakare

Right issues are those new securities that are given
preference to the existing shareholders & current employees
of the company to raise resourcesfor expanding,diversifying
& modernization of the issuing company

Answer / zuhoor

An offer of additional shares to existing shareholders, in
proportion to their holdings

Answer / tapan kumar sahu

Right issue is an invitation to the existing shareholders to
subscribe for further shares to be issued by a company. It
means an option to bye certain securities at a certain
privileged price within a certain specified period.

Answer / neha

thirtha U are talking about the share split.

Answer / reenaa kapoor

This is the offer of new shares by a company to the
existing shareholder.such rights are valuable to
shareholders as the are at a price below the current market
price.this right issue is a inexpensive & convient way of
raising editional capital.A right issue to the existing
shareholder is a mandatry requirement.
clearly the issue of additional shares to other
parties without giving the existing shareholders the
opportunity to subscribe would reduce the existing
shareholder.proportion of the total capital,i.e.it
would 'water'their equity.Therefore the stock exchange does
not allow a listed company to issue new shares without
giving pre-emptive rights to the existing shareholders.

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