Rights Issue
/ˈraɪts ˈɪʃuː/
Definitions
- (n.) An offer by a company to its existing shareholders to purchase additional shares, usually at a discount, to raise capital.
The company announced a rights issue to fund its expansion plans.
Forms
- rights issue
- rights issues
Related terms
See also
Commentary
A rights issue specifically targets existing shareholders, distinguishing it from other capital-raising methods; clarity in drafting should emphasize the pre-emptive rights involved.
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