How Do You Spell RIGHTS ISSUE?

Pronunciation: [ɹˈa͡ɪts ˈɪʃuː] (IPA)

The spelling of the phrase "rights issue" follows the typical English orthography. The first word, "rights," is pronounced /raɪts/ with a long "i" sound and a silent "gh" at the end. The second word, "issue," is pronounced /ˈɪʃu/ with a short "i" sound and a silent "e" at the end. Together, these words form a commonly used phrase in finance that refers to a company's offering of new shares to its existing shareholders at a discount to the current market price.

RIGHTS ISSUE Meaning and Definition

1. A rights issue refers to the process by which a company raises additional capital from existing shareholders by offering them the right to purchase additional shares at a predetermined price. It is a common way for companies to raise funds without involving external investors.

   When a rights issue is announced, all existing shareholders are given the opportunity to buy a specific number of new shares, usually in proportion to their existing holdings. These new shares are typically offered at a discounted price compared to the current market value, making it an attractive investment opportunity for shareholders.

   The purpose of a rights issue is twofold. Firstly, it allows companies to secure additional capital to fund their growth plans, such as expanding operations, paying off debts, or acquiring new assets. Secondly, it provides existing shareholders the chance to increase their ownership stake in the company and maintain their proportionate share of ownership.

   Shareholders have the option to either exercise their rights and purchase the new shares or sell their rights to other investors. The period within which shareholders can exercise their rights is usually limited and set by the company.

   Rights issues are subject to regulatory requirements and typically need the approval of shareholders through voting. The success of a rights issue depends on the willingness of existing shareholders to invest additional capital and the overall attractiveness of the offer.

Common Misspellings for RIGHTS ISSUE

• eights issue
• dights issue
• fights issue
• tights issue
• 5ights issue
• 4ights issue
• rughts issue
• rjghts issue
• rkghts issue
• roghts issue
• r9ghts issue
• r8ghts issue
• rifhts issue
• rivhts issue
• ribhts issue
• rihhts issue
• riyhts issue
• rithts issue
• riggts issue

Etymology of RIGHTS ISSUE

The term "rights issue" is primarily derived from financial and legal terminology. The word "rights" refers to the entitlement or legal claim possessed by shareholders of a company to buy additional shares at a specific price and within a specific time frame. This entitlement is known as a "right".

The term "issue" refers to the act of offering or implying the release of new shares by a company to its existing shareholders. These new shares are usually offered at a price lower than the current market price and are proportionate to their existing shareholding.

Overall, the term "rights issue" combines these two elements, indicating the issuance of new shares to existing shareholders with a right to purchase them at a specific price and within a given period.

Similar spelling word for RIGHTS ISSUE

• rights offering.

Plural form of RIGHTS ISSUE is RIGHTS ISSUES