rights issue
In finance, new shares offered to existing shareholders to raise new capital. Shareholders receive a discount on the market price while the company benefits from not having the costs of a relaunch of the new issue.
The number of shares offered depends on the capital the company needs. In a ‘one for one rights issue’, a shareholder is offered one share for each that he or she already holds. For companies this is the least expensive way of raising more capital.
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