Right issue is for existing shareholder of the company, so it is not public issue like IPOs. In it existing shareholders have right to apply or reject the right issue. Normally company give some discount in the price of share for right issue.Originally Posted by mohan
Rights Issue is another way of raising capital from the market. The money is raised from the existing shareholders. No party except the existing shareholders can subscribe to it. And its not a compulsion on shareholders to subscribe.
It is intentionally priced below CMP. Otherwise it makes no sense for the shareholder to buy them. If its priced above CMP, then obviously it makes sense to buy from secondary mkt rather than subscribing to Rights.
can anyone tell me about the "options" by giving example of it.....Thanx
It's already discussed, please use search option.
What are Options contracts?Options contracts are instruments that give the holder of the instrument the right to buy or sell the underlying asset at a predetermined price. An option can be a 'call' option or a 'put' option.
A call option gives the buyer, the right to buy the asset at a given price.
Similarly a 'put' option gives the buyer a right to sell the asset at the 'strike price' to the buyer. Here the buyer has the right to sell and the seller has the obligation to buy.
My questions very common but want more satisfy answers..
1. What is online and Offline trading?
2. How to online and Offline trading?
Online - Doing share trading via online Demat account.
Offline - Whenyou sell your physical share certificate to new buyer.
Offline trading is not avilable in India anymore.
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