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

International finance, WHy does most interbank currency trading worldwide i...

WHy does most interbank currency trading worldwide involve the US dollar?"

Draw the total expenses vs. time curve, For the set of activities shown in ...

For the set of activities shown in the table below, draw the total expenses vs. time curve using the following data: The labor rates are as follows: Labor # 1 (L1) rate = 30

What are the types of money and bank regulations, What are the types of Mon...

What are the types of Money and Bank Regulations? Types of Money : a. Commodity money b. A commodity-backed money c. Fiat money Bank Regulations: a. Deposit i

Cost of capital, capital structure of 38% common stock and 62% debt. A debt...

capital structure of 38% common stock and 62% debt. A debt issue of 1000 par value, 5.6% bonds that mature in 15 years and pay annual interest will sell for $979.dividends have gro

Existence of quantity discounts, Existence of Quantity Discounts Recur...

Existence of Quantity Discounts Recurrently, the firm is capable to take benefits of quantity discounts.  Since these discounts affect the price per unit, they influence also

Advantage of leasing an asset, Advantage of Leasing an Asset 1. ...

Advantage of Leasing an Asset 1. The company has the choice to purchase assets on the expiry of the lease period at that time it will identify the viability of the asset

Setting of optimal cash balance, Setting of Optimal Cash Balance Cash ...

Setting of Optimal Cash Balance Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone

FUNCTIONS OF BUDGET, FUNCTIONS OF BUDGET THAT MUST BE PRESENT IN THE MUNICI...

FUNCTIONS OF BUDGET THAT MUST BE PRESENT IN THE MUNICIPAL FINANCIAL MANAGEMENT AND INDICATE HOW THESE FUNCTIONS CAN INFLUENCE MUNICIPAL FINANCIAL MANAGEMENT

Effective financial management, Financial management is very important for ...

Financial management is very important for any organization as at the end what does matter is the money. An effective financial management is of high importance for ensuring the be

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