rights stock | BTCC Knowledge

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A rights issue is a corporate finance activity where a company offers additional shares to its existing shareholders, usually at a discounted price. Rights entitlement refers to the number of shares an investor is eligible to purchase. Investors can apply for these shares through their brokers. Rights offering is another term for rights issue. Investors should be aware of potential loopholes, such as dilution of existing shareholders' ownership. Understanding rights issues is crucial for making informed investment decisions.

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