01-08-2005, 12:46 AM
Hi dear all aslaam o alaikum !
Yes i got it basically when u r talking about RIGHT ISSUE . Means According to Companies ACt 1985 Section 19 Whenever Company will issue new shares the existing shares holder has a absoutely right to purchase them . it by law . so thats the right issue simple existing shareholders have a right to purchase newly share of same co.
Right issue always normally issued to xstng shareholders on lower prices after attaining the right of issue the price per share will be fell down. as i am mentioning the example
suppose a building has 2 owners if 3rd comes then investment will increase but the profit margin will decrease .
At last shares are issue to raise fund to accumulate finance but note it down clearly after obtaining right issue the EPS will fall.
As well a share holder can also sell the right issue to the third party.
He has also the option to sell the half of the right to party and can remain half with him
I think this will be enough]
Bye bye
Regards !
Abdul Samad <font color="red"></font id="red">
www.geocities.com/samadsh
Yes i got it basically when u r talking about RIGHT ISSUE . Means According to Companies ACt 1985 Section 19 Whenever Company will issue new shares the existing shares holder has a absoutely right to purchase them . it by law . so thats the right issue simple existing shareholders have a right to purchase newly share of same co.
Right issue always normally issued to xstng shareholders on lower prices after attaining the right of issue the price per share will be fell down. as i am mentioning the example
suppose a building has 2 owners if 3rd comes then investment will increase but the profit margin will decrease .
At last shares are issue to raise fund to accumulate finance but note it down clearly after obtaining right issue the EPS will fall.
As well a share holder can also sell the right issue to the third party.
He has also the option to sell the half of the right to party and can remain half with him
I think this will be enough]
Bye bye
Regards !
Abdul Samad <font color="red"></font id="red">
www.geocities.com/samadsh
