Answer Posted / agon kwame evans
When doing a Secondary Market Offering of shares to raise
cash, a company can decide to issue a shares to existing
share holders on pro-rata basis. 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
accepted in part by each shareholder.
Rights are often transferable, allowing the holder to sell
them on the open market.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What are some of the objectives of LIC?
What are the first 30 companies in BSE and what are the first 50 companies in NSE
Why are venture capitalists opposite to angel investors?
What is the difference between accounting and financial accounting?
What is NABARD and tell some of its functions?
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?
What is current assets turnover ratio? What does it indicate?
How is control over public deposits exercised?
Define the term GDP? What is the current GDP of the country?
What do you know NABARD?
Define Non Convertible Debentures?
What are some of the roles of NABARD and IRDA?
tell us something about nabard and its functions.
What is HDI? How is it calculated?
What is marginal standing facility (msf)?