Answer / anup

not to the employees.. only existing share holders.. the new
issue is made to the existing share holders is called as
right issue.. generally the issue price is lower than the
market price of the company's stock.

Answer / priyanka

anup is right.when the new issue is made to existing share
holder,it is called right issue.

Answer / chandrashekar

Both Anup and Priyanka are correct. Right isuee is only for
Existing share holders at a discount price than the market
price.

Answer / k.srinivas chowdary

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.

Answer / ashok rayilla

Issuing shares to existing shareholder

Answer / debarati guha

When doing a Secondary Market Offering of shares to raise
money, a company can opt for doing a rights issue to raise
capital. With the issued rights, existing shareholders have
the privilege to buy a specified number of new shares from
the firm at a specified price within a specified time. A
rights issue is offered to all existing shareholders
individually and may be rejected, accepted in full or (in a
typical rights issue) accepted in part by each shareholder.
Rights are often transferable, allowing the holder to sell
them on the open market.

Answer / abhishek saggar

Company decides to liquidate more stocks, it gives first
preference to the existing shareholders. Such issues is
called as Right Issue

Answer / p.pavan kumar

When the company wants to raise additional money through
the public it gives the first priority to the existing
share holders but not to its employees. Issuing the shares
to employees not come under the right issue. It might
be "ESOP" (Employee Stock Options) or "SWEAT Equity shares".

Answer / simriti uppal

When a company wants to raise capital by issue of shares,It
has to first offer its shares to the existing shareholders
on a ratio basis (1:1 - one right share for each share
held)is called a right issue.
Subscription to right issue does not increase the
shareholder's wealth but letting the right expire will
reduce the shareholder's wealth.

Answer / madhu

If a company wants to raise capital, some times it may go
for a rights issue instead of a public issue. Rights issue
is the process by which the company raises capital from the
existing share holders only. The company fixes a certain
ratio and issues new shares to the existing share holders
based on a pre fixed price.

What is the current price/level of: the FTSE 100, S&P 500, the Bank of England base rate, LIBOR, a barrel of Brent Crude, an ounce of gold, the US dollar, and the euro?

0 Answers  

What is the difference between single point tax and value added tax?

3 Answers   ABC, CS,

Why do you want to go to USA

4 Answers  

Does solvency margin in Life Insurance is invested into any funds?

1 Answers  

Explain retained earnings/ ploughed back profits.

0 Answers  

what do you mean by forex reserve

2 Answers  

What is dematerialization?

0 Answers   SEBI,

what do you mean by exchange rate? ho0w it is determined?

6 Answers  

why do you want do your specialization in finance?

4 Answers   HDFC, Wipro,

WHAT IS DIFFERENCE BETWEEN BANK RATE & REPO RATE

6 Answers   BSRB, Deloitte, Deutsche Bank, JPMorgan Chase, State Bank Of India SBI,

reasons for doing mba

11 Answers   Idbi Bank,

Is credit card integration with payment gateway make business fast.

1 Answers   TATA,