There are times when a company would want to raise capital from the stock markets but does not want to dilutute the share holding structure of its existing shareholders.
What the company would rather do will be to give its existing shareholders the chance to buy more shares at a discounted price.
Share holders can take any of the follwing actions:
Take up the right,
Sell the right, or
The first two actions will ensure that the shareholder is not worse-off while the last option is not a good option.
Right shares are the shares which are offered by the company to the existing shareholders.Simply stated the existing shareholders have a right to subscribe for the shares which are offered by the company after initial allotment until some special right is reserved for any other person by special resolution in this respect.
by Mary Hyatt5 years ago
My feed is full of "shares" by a Hubber. HP recommends we do not share our own Hubs too frequently, why can't that apply to multiple sharings by the same Hubber for other Hubs. I don't think they...
by Janis Leslie Evans3 years ago
Something is wrong with the hubfeed. I've had two incidents so far of multiple shares of one hub. The last one was in the feed 11 times.
by Whitney3 months ago
investing in penny stocks
by mikelong6 years ago
http://www.foxnews.com/politics/2011/07 … k1%7C77674If businesses could play by the rules, perhaps they wouldn't need to be watched...
by Eugene Brennan21 months ago
If the number of shares was displayed adjacent to the share buttons, would it result in a "herd instinct" and encourage more readers to share?
by thecollecktor6 years ago
It is my intent to discover the formula for investing in penny stocks that goes beyond the hype currently being used. What criteria do you use?
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