{"id":4073,"date":"2023-03-17T14:39:54","date_gmt":"2023-03-17T14:39:54","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/rights-issue\/"},"modified":"2023-03-17T14:39:54","modified_gmt":"2023-03-17T14:39:54","slug":"rights-issue","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/rights-issue\/","title":{"rendered":"Rights Issue"},"content":{"rendered":"<p>\n\u2018Rights\u2019 or \u2018Rights issue\u2019 is an offer to existing shareholders to purchase additional new shares in the company. A Rights issue gives the shareholders a \u2018right\u2019 to participate in the offer, but there is no obligation. The Rights Issue comes at a discount to the stock\u2019s market price and it is to be exercised at a specified date, communicated in advance. The company can raise funds and save on costs through the rights issue. A rights issue also enhances the company\u2019s image and is a transparent process where shareholders can get shares in proportion to their existing shareholdings.<\/p>\n<h2>Features of a Rights Issue<\/h2>\n<p>Features of a Rights Issue are:<br \/>\nA Rights issue is a fresh issue of shares to the existing shareholders.<br \/>\nA Rights issue results in dilution of equity and thus, the EPS and the Return on Equity will be negatively impacted.<br \/>\nRights are offered only to those shareholders whose names exist on the record date which is the cut-off date for the Rights issue.<br \/>\nSubscription to the Rights issue is a voluntary option.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Rights\u2019 or \u2018Rights issue\u2019 is an offer to existing shareholders to purchase additional new shares in the company. A Rights issue gives the shareholders a \u2018right\u2019 to participate in the offer, but there is no obligation. The Rights Issue comes at a discount to the stock\u2019s market price and it is to be exercised at [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-4073","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4073"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4073\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}