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What is issue of right?

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Anonymous

∙ 15y ago
Updated: 6/8/2023

The right shares are the shares which a company issues to its existing shareholders. If e.g., a commercial bank in order to comply with its Central Bank's request of raising paid up capital to a certain amount decides to issue further shares, then these shares will first be offered to its existing shareholders. In case of no response from the existing shareholders, they can then be offered to others.

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Kathleen Cruickshank ∙

Lvl 13
∙ 3y ago
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