Rights Issue & Warrants

When you begin active trading in the market, you will need to know about Rights Issue & Warrants, sooner or later.

“Companies that need to raise additional capital can do so by issuing additional shares of stock. However, these additional shares will dilute the value of existing shares, which can be a concern for shareholders. Many companies, therefore, choose to issue rights or warrants as an alternative means of generating capital. These instruments give shareholders the preemptive right to purchase additional shares of stock directly from the company, typically at a discounted price.”

Here’s a good article by GAINVESTOR on this subject detailing TOMYPAK‘s corporate action. There are specific deadlines to be met in such an exercise so you must pay close attention to the revelant dates if you intend to subscribe to your entitlement.

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