| A security that sells at a discount of, say one-fifth or more, from face value. In the context of a rights issue, the issue of shares at a price much lower than the current trading price. In most rights issues, the new shares are priced at 10-15 per cent below the current price which is thought to be enough to ensure that existing shareholders take up the rights and buy the new shares. With a deep discount rights issue, the discount can be anything up to 50%. A deep discount broker is one that offers lower than normal commissions in return for a no frills execution service.
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