Intermediate
Rights issue timetables from announcement to new shares
A rights issue is a sequence of events rather than a single date. Eligibility, trading, instructions, payment and delivery each have their own place on the...
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Warrants & Rights Trading Guide
Understand warrants and subscription rights, from contract basics to pricing, dilution, exercise and portfolio risk. Follow eight stages covering corporate warrants, covered warrants and rights issues.
Start with What a warrant gives you and what it does not, then follow the next lesson links. Explore 32 lessons with worked examples, exercises and further reading.
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Rights Issues and Entitlements · All lessons
Rights Issues and Entitlements
Follow an entitlement from announcement to subscription and calculate the effect of each decision.
Intermediate
Theoretical ex rights price and the value of an entitlement
The theoretical ex rights price estimates how existing equity value and new subscription cash are spread across an enlarged share count. It is a reference calculation,...
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Intermediate
Subscribe sell or let rights lapse
An existing shareholder can respond to a transferable rights issue by subscribing, selling the rights or allowing them to lapse. The economic comparison must include both...
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Intermediate
Oversubscription underwriting and rights issue dilution
A rights issue can contain an oversubscription facility, a shortfall offer and underwriting commitments. These features influence allocation and control but do not guarantee investment value...
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