A method by which quoted companies on a stock exchange raise new capital, in exchange for new shares.
An offer of additional shares at a discount to existing shareholders, and able to be exercised within a short (30-60 days) time span. Unlike a bonus issue, a rights issue is not free. The shareholder is not obliged to take up a rights issue but is able to renounce them - that is, sell or transfer their right to the shares.
3 for 5 Renounceable Rights Issue (3 May 2004).
A privilege granted to shareholders to buy new shares in the same company, usually below the prevailing market price.
new shares issued by a company and offered to existing shareholders at less than their market price.
A method by which a company raises cash for an acquisition or expansion. If you already hold shares in a company you will be entitled to buy more at a set price, on a pro rata basis.
An offer to shareholders to buy new shares, usually at a price lower than market price.
Companies use Rights Issues to raise extra capital. Existing shareholders are given new rights, Nil Paid Shares, under the Offer ratio set by the company, eg 3 new shares for every 2 held. The Offer is usually at a lower price than the current market price to attract shareholders to subscribe to the Offer. By doing so existing shareholders can maintain their percentage holding in the company. The Nil Paid Shares are able to be traded until the expiry date, allowing shareholders the ability to sell their Rights should they not wish to subscribe for extra shares.
The sale of new shares, with existing shareholders having a transferable right to buy the new shares.... more on: Rights issue
The raising of new capital by giving existing shareholders the right to subscribe to new shares or debentures in proportion to their current holdings. These shares are usually issued at a discount to the market price. A shareholder not wishing to take up a rights issue may sell the rights.
An issue to shareholders of extra shares in a company in relationship to the number of shares they already own. You generally have to pay for the extra shares, usually at a discounted value.
New shares offered to a company’s existing shareholders on favourable terms to raise capital.
Issue of shares by a company to its shareholders in a certain proportion to their holdings, as a matter of their right to receive preferential treatment. Whenever a company comes up with new share allotment then the existing share holder have a right to buy these share at par or at premium. An existing shareholder, instead of subscribing to such an issue, can let his rights lapse, or renounce his rights in favour of another persons (free, or for a consideration) by signing the renunciation form.
A process whereby a company raises new money by offering its existing shareholders the right to buy newly created shares in proportion to their existing shareholding ("pre-emption rights"). These new shares are often offered at a significant discount to assist shareholders in participating. The rights to new shares for which existing shareholders elect not to subscribe can then be sold to other investors, with the proceeds of this sale being returned to the original shareholders.
An opportunity to existing shareholders of a company to buy more shares in the company at a discounted rate, without the need to buy through intermediaries.
an offering of common stock to existing shareholders who hold subscription rights or pre-emptive rights that entitle them to buy newly issued shares at a discount from the price at which they will be offered to the public later; "the investment banker who handles a rights offereing usually agrees to buy any shares not bought by shareholders"
a means of raising funds by issuing more shares
a means of raising money for the company
an invitation by the company to existing shareholders to buy new shares at a discount to the market price
an issue of new shares for cash to existing shareholders in proportion to their existing holdings
an issue of shares made when a company asks its own shareholders to subscribe for new shares, often at a discount to the current market price, to fund expansion or to pay off debts
a way a firm can raise new money
a way of raising money by issuing new shares, and giving existing shareholders a right of first refusal
When a company issues additional shares to existing shareholders to raise more funds.
A company confering ‘rights' to shareholders allowing them to acquire additional shares in the company, usually at a discount to the market price. Shares held by shareholders who do not exercise these rights are usually diluted by the offering. Rights are sometimes transferable, allowing the holder to sell them on the open market to others who may wish to exercise them.
A share issue in which existing shareholders are given the pre-emptive right to subscribe for the shares in order to prevent the dilution of their stake in the company. Rights issues are often made at substantial discounts to a share's market price and are often underwritten.
A means whereby a company may raise extra money from its own shareholders.
This is where a company wishes to raise more capital to finance development or a take-over. All existing shareholders are offered say 1 new share for every five held. If the share is quoted at say 100 cents the rights would normally be pitches at say 85 cents. You have the right to subscribe to the additional shares or to sell you rights for the 15 cents a share. This reduces your investment cost but also dilutes you percentage holding in the company. See also Nil Paid Letters.
An offer by way of rights to current holders of securities that allows them to subscribe for securities in proportion to their existing holdings.
An offer of securities to existing holders of securities inviting them to purchase or subscribe for further securities in proportion to their existing holdings made by means of the issue of a renounceable letter or other negotiable document of title which may be traded on a 'nil paid' basis so that existing holders can realise any premium
The offer of shares to existing shareholders to enable a company to raise further capial
The issue of additional shares to existing shareholders when companies want to raise more capital.
Share issues to existing shareholders in a fixed proportion to those they already hold, at a given price. The shareholder can either exercise or renounce his interest in the rights.
The issue of new shares by a company to raise cash, these shares are normally offered to existing shareholders in proportion to their holdings.
A means of raising new capital whereby existing shareholders agree to buy new shares at an agreed price, which will normally be at a discount to the current market price.
An issue of shares by an existing company which it sells to its members on favourable terms. Not to be confused with a bonus issue which is issued free to the members.
When a company already listed on the Stock Exchange wants to raise additional funds, it may offer further shares first of all to its existing shareholders who have a right to buy them before anyone else. To attract them to buy, the price at which the shares are offered is usually quite favourable. If the shareholder does not want to take up the rights issue they can sell their right to buy through a broker. This is traded as a separate stock and, as no payment has been made, is consequently known as Nil Paid rights.
an offer of additional shares to existing shareholders, in proportion to their holdings, to raise money for the company. Rights issues are renounceable, meaning the shareholder can sell his or her right to the shares.
When a company offers shareholders an opportunity to purchase more shares within that company. This raises a companyâ€™s capital with shareholders buying additional shares at a discounted price.
Offer of shares to existing shareholders usually at a discount to market price.
a company offers new shares, on a pro rata basis, to its shareholders at a set price.
Also known as a Cash Issue, a method companies use for raising extra capital. Options to buy more shares usually at a price below the current Market price are distributed to existing shareholders on a pro rata or equal basis e.g. the right to buy one new share for every five held. Usually if the shareholder does not wish to buy the extra shares they can sell the rights (unless Non Renounceable) to other investors.
When a company invites existing shareholders to buy additional shares prior to their public offering. The invitation is normally in proportion to the existing shareholding and usually at a discounted price.
A privilege allowing existing shareholders to buy shares shortly before they are offered to the public at a specified and usually discounted price and usually in proportion to the number of shares already owned. Such corporate actions mean that Finspreads will adjust any position accordingly
The relatively rare occasions when a company issues new shares to raise cash - insurance companies have recently made rights issues to strengthen their balance sheets. The proceeds go directly into the company's bank account, instead of giving a profit (or a loss) to an existing shareholder. Shareholders do not like rights issues. By putting more shares on the market, a company dilutes the value of its existing shares. If you already hold shares in a company making a rights issue, this means that you will be offered more shares in the company at a discount to the prevailing price in the market. To give you an incentive to take part, the shares are almost certainly going to be issued at a deep discount to the current market value - a 20% reduction is common. As a result, the market value of existing shares is likely to fall after a rights issue.
Issue of new share to the existing shareholders at a price which is normally lower than the current market price of the old shares. It is issued in a fixed ratio to the those shares which are already held.
Selling new shares to existing shareholders to raise capital.
This is an issue of extra shares by a company. Existing shareholders can buy extra new shares in proportion to the shares they already hold. The shares are usually on sale at a price lower than the stock market price to encourage shareholders to buy. The shareholders can sell the rights if they do not wish to use them.
An offer made to a holder of an existing security to purchase new securities issued by the same company at a discount to the existing market, and able to be exercised within a relatively short (30-60 days) time span.
Offer of shares to existing shareholders (usually in proportion to their existing shareholdings) to raise money.
A means whereby a company may raise capital from its own shareholders. It does this by offering additional newly-issued shares to the shareholders at a discount on the price at which they will later be offered to the public, usually on the basis of a certain amount of new shares for every old share held. Most rights issues are handled by investment bankers who also underwrite the issue by agreeing to buy any of the newly-issued shares which are not taken up by shareholders.
An offer to existing shareholders to buy new shares, generally they are offered at a discount to the market price.
A rights issue is an issue of shares for cash by a company to its existing shareholders on a basis pro rata to their existing shareholdings. The rights issue will normally be at a substantial discount to the current share price (often between 20% and 40% discount).
When a company issues more shares to existing shareholders - usually at a discount - as a way of raising more funds.
An offer to the holder of an existing security (such as a share) to buy new securities issued by the same company, usually at a discount to the current market price.
Offer of shares made to existing shareholders.
An invitation to existing shareholders to purchase additional shares in the company.
An additional issue of shares by the company to existing share holders and at an advantageous, discounted, price. A means for the company to raise new funds for further development or to finance a new acquisition for cash. A 2 for 5 rights at 145p means that the existing share holder has the right to acquire a further 2 shares for every 5 currently held at a new cost of 145p per share acquired.
Issue of shares to existing shareholders in order to raise extra finance.
When a company wants to raise more funds by issuing additional securities, it may give its stockholders the opportunity, ahead of others, to buy the new securities in proportion to the number of shares each owns. The piece of paper evidencing this privilege is called a right. Because the additional stock is usually offered to stockholders below the current market price, rights ordinarily have a market value of their own and are actively traded. In most cases they must be exercised within a relatively short period. Failure to exercise or sell rights may result in monetary loss to the holder.
When existing shareholders are given rights to purchase new shares in proportion to their existing holding. Compare with Bonus Issue.
An issue of shares for cash by a company to its existing shareholders on a basis pro rata to their existing shareholdings. The issue will normally be at a substantial discount to the current share price (usually between 20% and 40% discount). The rights issue is a means of implementing Pre-Emption Rights. On a rights issue, existing shareholders will receive a Provisional Allotment Letter, which tells them how many shares they have the right to subscribe for and the subscription price for the rights. They may exercise their rights and subscribe for the shares. Alternatively, they may sell the provisional allotment letter to another person who can subscribe for the shares. This is known as selling the rights nil paid. A third alternative is to take no action by the deadline for subscription. In this case, the company will sell the shares in the market, retain the subscription price and remit any excess proceeds from the sale to the shareholder who failed to take up his rights.
The offer to present stockholders to purchase additional stock at a discount from present market prices.
Issue of shares that is offered to current shareholders in proportion to their holdings to raise money for the company.
An offer to sell new securities to holders of an existing security, issued by the same company. The issue offer is usually below the prevailing market price, and the new shares can be exercised within the short term (two to three months).
A new issue of shares offered to existing shareholders in proportion to their existing holdings. Usually offered at a discount to entice take-up that causes the existing shares to fall in value to the theoretical ex-rights price.
When a public company creates new shares. Existing shareholders are generally offered the right to purchase a certain number at a discount to the market value. In the USA, a rights issue is a form of secondary offering.
An offer of securities to existing shareholders by a company in proportion to their existing holdings.
When doing a Secondary Market Offering of shares to raise money, a company can opt to do a rights issue to raise equity. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from the firm at a specified attractive 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.