what is meant by rights issue in stock market
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In the stock market, a rights issue is when a company offers its existing shareholders the opportunity to purchase more of their stocks at a specific price within a set timeframe. This allows shareholders to buy additional shares directly from the company, often at a discounted price.
A rights issue in the stock market is when a company gives its existing shareholders the chance to buy more shares at a discounted price. This helps the company raise money without involving new investors. If you already own shares in the company, you get the option to buy more at a lower price than usual. It’s like getting a special deal because you’re already a part owner of the company.