How to buy shares when there is a rights issueArticles
Home | Finance | ( 1 ) | Subscribe | Post a comment Posted by Felix Okoli on Tuesday July 23, 2013 9:58:47:
In Nigeria, there are different opportunities for investing in the stock market by buying shares. These includes during initial public offers(IPOs), Rights issues and trading in the secondary market.A rights issue is an offer to shareholders of a company by the registrar offering more shares to existing members in proportion to their existing ownership in the company.Rights issue, just like a Public offers is an open offer that still needs to be accepted by the shareholder in order for the business transaction to be completed. Shareholders are allowed to claim their rights by paying for the additional shares alloted to them based on their rights.A rights issue is normally announced by the company and then documents are dispatched to the shareholders including a prospectus. When you receive your prospectus(A document that contains the details shares allotted to you and application form), you'd just need to fill it and submit it along with your payment to any receiving agent close to you that is listed in the prospectus.
How to buy your rights issue
- Tear off the application form at the back of the prospectus, fill and submit to a close bank or stockbroker or other receiving agent.
- Your application should include your name, CSCS number, Clearing house number and signature.
- You can also request for additional shares using the same form
- Make payment by cash deposit or bankdraft
- Keep a copy of your application and payment details
- Your application would be posted back to the company registrars and shares would be allotted to you in due time
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