Understanding Rights Capital: How Companies Raise Capital | Prof. Varun Jindal

Prof. Varun Jindal from the Finance & Accounting area gives a quick and clear rundown of the mechanics behind rights issues and why they matter in today’s market environment.
Prof. Jindal first walks us through the ways in which listed firms raise money, with a focus on rights offerings, and what its implications are for investors like you and me.
When a company initiates a rights offering, existing shareholders can purchase additional shares at a discount or sell their rights in the market. Prof. Jindal highlights the necessity of taking action-either by exercising your rights or selling them-because inaction might result in losing value on your investment.