Rights Issue Premium

Definition

Rights Issue Premium refers to the additional amount that shareholders are required to pay to exercise their rights in a rights issue, over the par value of the shares.

Usage and Context

Rights issue premium is the additional amount shareholders pay over the par value when exercising their rights to buy new shares.

Frequently Asked Questions

What is rights issue premium?
Rights issue premium is the amount shareholders pay above the nominal value of shares when they buy new shares in a rights issue.

What is a rights premium?
A rights premium is the extra value or cost linked to the rights offered in a rights issue, reflecting the advantage of purchasing shares at a lower price.

What is the meaning of right issue?
A rights issue gives existing shareholders a chance to purchase more shares at a discount.

Benefits

Rights issue premium is the extra amount paid by shareholders to exercise their rights in a rights issue.

Conclusion

Rights issue premium is the extra amount shareholders pay above the base price in a rights issue.