What is Rights Issue? | Rights Issue of Shares | Meaning of Rights Issue | Company Law

🔴 Meaning of Rights Issue
A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price.
🫵🏻 A rights issue is one way for a cash-strapped company to raise capital often to pay down debt.
🫵🏻 Shareholders can buy new shares at a discount for a certain period.
🫵🏻 With a rights issue, because more shares are issued to the market, the stock price is diluted and will likely go down.
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🔴 This video might be useful for students preparing for -
🫵🏻 11th Commerce #11thcommerce
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🫵🏻 UGC NET COMMERCE #ugcnetcommerce
🫵🏻 LLB #llb
🫵🏻 UGC NET LAW #ugcnetlaw
🫵🏻 Economics Students
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🔴 In this video-
Teacher's Name - CS Payal Popli
Topic - RIGHTS ISSUE
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#padhakulog #economics #economicstudent #statistics #economics11thclass
#csfoundation #icsi #companysecretary #companiesact2013 #commercestudents
#legalaptitudeandlogicalreasoning #cuet #cuetpreparation
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[@shreyamanna5802]

Awesome explanation🎉🎉🎉

[@vaizadfauji9897]

Thank u so much ma'am

[@dancewithfirebae1351]

Thank you ma'am

[@atuldhule6556]

Thanks Mam 😊

[@Platina-dd6ur]

Good explanation

[@LakhvirSingh-mj4ky]

Mam redemption of preference share meaning

[@anujsomany2716]

Pls make a video on Margin Money rules of stock brokers as most people do not know its intricacies i.e ins & outs of it

[@thedyk0895]

Mam please upload video on sweat equity share

[@padhakulog]

Ji

[@YourVansh001]

Sweat shares are those shares jo company issue krti h apne employees ko saste meh unke hard work ke liye
Learning trick : employees ke mehnet khoon pasina = sweat or sweat ke liye jo shares issue kiye voh sweat shares !

[@beastboysuraj415]

if the share is not allotted will i get my RE money back on the price on the price which i have purchased

[@beastboysuraj415]

Please reply

[@fabapoorav3043]

Isn't it same as ESOP? What's the difference between these two?

[@padhakulog]

Both are different…one is for employees one is for menbers

[@ManojKumar-in8ob]

Esop are the shares which are issued to employees. But the right shares issued to the member or the existing shareholder.
The objective of ESOP is to save the employees to work in other company this is the way to motivate employees to work in their company.
The objective of the right issue is to save the ownership from distributing to the public.
And that's all.
I hope you have understood the difference. I have done my best to tell you this concept.
If you need for any further query you can ask..