What is Right Issue?
Answers were Sorted based on User's Feedback
Answer / philemon k edakkad
when the company goes for the further issue, then it give
the first preference to the employees and the existing
share holders. it is called right issue.genarally issue
price is lower than market price
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Answer / nagendran
Will the right issue causes the redution of share price
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Answer / mohamed amin bhakrani
when a company is facing a high debt to equity ratio, and
wants to infuse more funds into the company, they come out
with a right issue which is giving preference first to the
existing shareholders to buy 1 share for every one held in
the company at a deep discounted rate than the one that is
prevailing in the market.
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Answer / deepanshu agrawal
when a company offers a right to existing shareholder to
purchase additional share at given price which is at
discount that is called right issue..
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Answer / krushna chandra swain (guntha
An offer made by a quoted company to its shareholders to
enable them to buy new shares in the company at a discount
to the market price. Existing shareholders are usually
offered shares in proportion to their existing holding. For
example in a one for five rights issue, a shareholder would
be invited to buy one new share for every five shares
already owned. The new shares are offered at a discount to
the current market price and because of that the rights have
a value in themselves and can be sold separately.
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Answer / simi
A company is under a legal obligation to offer future issue of shares to its existing equity shareholder unless the company has resolved otherwise by a special resolution. the holders are not liable to necessarily accept the offer so made, they have the option of rejection and renunciation. this right is called right shares
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Answer / peter athanas
the right issue is the type of shares that the company
issue shares for the existing shareholders and at the price
bellow the market price.
but, something to note is that right issue comprises two
elements that is script issue(bonus issue)and share issued
at full market price.
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Answer / asif kamaluddin
RIGHT ISSUE IS AN SET OF FREE RIGHTS GIVEN BY THE COMPANY
TO ITS EXISTING SHARE HOLDER AT DISCOUNTED PRICE.COMPANY DO
SO INORDER TO RAISE CAPITAL.
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Answer / suresh
rights isue is nothing but issuing new shares to the
existing share holders.to get the attention of investors
generally companies go for rights issue when they
(companies) get surplus profits.the prices of these shares
will be lower than the market price of the shares. for
example recently sbi went rights issue.
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Answer / nisha jain
when an existing company issued shares to its exsistig
shareholders it is called the right issue of shares.
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