what is right share?

  1. profile image46
    Rimon Khanposted 7 years ago

    what is right share?

  2. chinweike profile image68
    chinweikeposted 7 years ago

    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
    Do nothing.

    The first two actions will ensure that the shareholder is not worse-off while the last option is not a good option.

  3. profile image0
    ankigarg87posted 7 years ago

    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.