Entitlement Issue |
| An entitlement issue, also known as an open offer, is an offer made by a quoted company to its shareholders inviting them to buy new shares in the company at a set price, which is normally lower than the current market price. The purpose, as with a rights issue, is to raise new capital for the company. Unlike a rights issue, an entitlement issue cannot be traded or sold on by the shareholder - this usually means that investors are allocated subscription shares, not nil paid shares. |
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