a) Rights issue how it works? Why companies prefer to raise funds through rights issue? How to apply for rights issue?
b) How it will be helpful for investor?
c) How does share price reacts during the time of rights issue?
d) Company will announce the rights issue in the ratio of 2:10 which means every 10 shares he will receive 2 shares according to rights issue price. What happens if I hold less than 10 stocks?
e) If I don’t apply for rights issue will I incur any loss?