1.6 Rights Flashcards
1
Q
Rights offering / right issue
A
When a company sells new shares to current shareholders only
2
Q
When would a company have a rights offering?
A
When the company is strapped for cash and unable to borrow
3
Q
Subscription rights
A
The rights sold in a rights offering
4
Q
Rights are long or short?
A
Short
Usually 2 - 4 weeks
5
Q
Subscription price
A
The discount price offered to shareholders on new shares
