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Selling rights letter: why would a person sell their rights? If i understood correctly, shareholder has right to buy shares @ $3 (example 1), but could sell their right to someone for $1.60. Original shareholder still has to pay company $3, costing them $1.40.Why not simply buy @ $3 an actually own the share instead of paying $140 for not owning it.
Thank youIf someone sells their rights then they do not have to pay the company at all. They sell their rights to someone else, and it is the ‘someone else’ who then pays the company in order to take up the shares.
Have you watched the free lectures that go with the lecture notes? There is no point in using the notes without watching the lectures because it is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason then you must buy a Study Text from one of the ACCA approved publishers and study from there.
Thank you for the feedback, i have watched the lecture, this point was not to clear for me.
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