Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / 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.
| Is This Answer Correct ? | 4 Yes | 4 No |
Post New Answer View All Answers
Tell me the characteristics of a hands-on BSA?
what is the short cut to recall the last narration saved for the first ledger in the voucher?
What is marginal standing facility (msf)?
Why credit suisse?
What are Non Performing Assets? How can they be reduced?
What is the National Income?
What is an overdraft?
What do you know about NITI Aayog?
Share your views on women entrepreneurship?
1. What is Discount Rate? 2. Does it depends on place/condition where we are using it? 3. Discount Rate = Repo Rate or Bank rate?
Walk me through a DCF…
Tell about Foreign Exchange Reserve?
What is the importance of capitalization?
What Entry Will Be Passed When Debentures Are Issued at Premium?
hi viewers my name is prapul i would like to know how to prepare for an interview i had done my mba finance
