Define the term - right issues, Finance Basics

Assignment Help:

Define the term - Right Issues

If an existing company intends to raise extra funds, it can do so by borrowing or b issuing new shares. One of the most general methods for a public company to use is to offer existing shareholder the opportunity to subscribe further shares. This mode of finance is known as 'Right Issues'. Existing shareholders have right to entitlement of further shares in proportion to their existing shareholding. Rights of entitlement of a shareholder, who doesn't want to buy the right share, can be sold to someone else.

N = Number of outstanding shares/ Number of new shares to be offered

Where N= Number of rights needed to buy one new share

 


Related Discussions:- Define the term - right issues

Project apparisal, challenges your likely to face when apparising a project...

challenges your likely to face when apparising a project on the implemtation stage

Conditions under which Loans Are Ideal, Conditions under which Loans Are Id...

Conditions under which Loans Are Ideal a) Whenever the company's gearing level is low as the level of outstanding loans is low. b) The company's future cash flows as inflows

Student., what type of assets does Intel own and the most significant asset...

what type of assets does Intel own and the most significant asset to the company and why?

Aafafa, Ask lajgkjasbgksabgbaskjbaskjbasjgbhjabgjbjgbskjgbkasbgjkabksgbksbg...

Ask lajgkjasbgksabgbaskjbaskjbasjgbhjabgjbjgbskjgbkasbgjkabksgbksbgkabkhvakkvbaoygfyabkbkkye#Minimum 100 words accepted#

Profit maximization - objectives of business entity, Profit maximization - ...

Profit maximization - Objectives of Business Entity Conventionally, this was considered to be the main goal of the firm. Profit maximization refers to getting the highest poss

Drawback of stock repurchases, Drawback of Stock Repurchases 1. High ...

Drawback of Stock Repurchases 1. High price A company may find it not easy to repurchase shares at their recent value and price paid may be higher to the detriment of rem

Different risk-profile - shareholders and management, Different Risk-profil...

Different Risk-profile - Shareholders and Management Shareholders will generally prefer high-risk-high return investments while they are diversified that is they have many inv

What is the process of investing in securities, What is the Process of Inve...

What is the Process of Investing in Securities ? There are several process of investing in securities:- (1) Finding a Broker (2) Selection of Brokers (3) Opening an Account w

The income statement and the balance sheet, Conduct research and explain th...

Conduct research and explain the companies, their operations, locations, markets, and lines of business. Collect financial statements for the past three years, fiscal or calendar .

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd