Rights Issue
Rights Issue
Financial glossary
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Finance
Definition of rights issue
Rights Issue: An additional issue of shares by the company to existing share holders and at an advantageous, discounted, price. A means for the company to raise new funds for further development or to finance a new acquisition for cash. A 2 for 5 rights at 145p means that the existing share holder has the right to acquire a further 2 shares for every 5 currently held at a new cost of 145p per share acquired.
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Glossary of financial terms
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Definition and meaning of rights issue
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