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Unlike a standard rights issue an non-renounceable rights issue is one that cannot be transferred to another investor.
Under a traditional renouncable right issue the holder of the shares as the option to transfer rights to another investor (usually for a price).
This is not an option for a non-renounceable rights issue and the investor has one of two choices
1) Take up the rights
2) Ignore the rights
Neither is necessarily the right option as the decision the investor needs to take depends on why the company has offered the rights in the first place.
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What is Non-renounceable rights issue of shares?
Unlike a standard rights issue an non-renounceable rights issue is one that cannot be transferred to another investor. Under a traditional renouncable right issue the holder of the shares as the option to transfer rights to another investor (usually for a price). This is not an option for a non-renounceable rights issue and the investor has one of two choices 1) Take up the rights 2) Ignore the rights Neither is necessarily the right option as the decision the investor needs to take depends on why the company has offered the rights in the first place.
What are convertible and non convertible preference shares?
in case of non convertible preference shares, the holders are not given the right to convert their shares into equity shares.
What are Cumulative and non cumulative preference shares?
Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
What is forfeited share?
Forfeited shares Shares in a no-liability company which are forfeited (lost) to the previous owner because of non-payment of a call on the shares. Forfeited shares Shares in a no-liability company which are forfeited (lost) to the previous owner because of non-payment of a call on the shares.
What is the difference between private banking and non-private banking?
"There are many differences between private banking and non-private banking. The differences are as follows: number of directors, issue of prospectus, consent of directors, and the transferability of shares."
What is oversubscription of shares?
When demand for a particular share is more than its supply, it is said to be oversubscribed. Oversubscription leads to sky high cut-off prices of shares and often leads to non-allotment of shares. It is always good to get an idea of oversubscription beforehand and bid accordingly. EG: If a person bids for 10 shares in retail category and the issue is oversubscribed 2 times, he wiill get only 5 shares.
What is the difference between ordinary shares non-voting shares and preferred shares?
Preferense share has the preference over all other kind of shares for payment at the time of liquidation and it gets fixed percentage of interest even in case of loss.Non-Voting shares are those share which donot have the right to vote in meetings.Ordinary shares has the voting rights and share profit as well as loss and has the payment priority at last from any other debt.
What are Cumulative and non cumulative shares?
Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
Non-cumulative irredeemable preference shares?
The non cumulative irredeemable preference shares do not accumulate over time. This therefore means that they cannot be redeemed in future.
What are encumbered and non-encumbered shares?
I think it is the promoter holdings. The promoter has not taken debt against these shares.
Is ordinary shares a current or non current asset?
Neither, shares are listed under owners equity.
What are non diluted equity shares?
..is the fair value.
