Sir please tel me 1 thing that what would happen to shareholders wealth and investment in company in the following cases
a) Shareholder sell all rights
b) Shareholders exercise all rights
c) He does nothing
d)He can sell half and exercise half
Ask the Tutor ACCA FM
Right issue
No I won't - I explain what happens in all of those case in my lectures!!
The effect on shareholders wealth is the same for all of them (assuming, as is normally the case, that the company automatically sells the rights if the shareholder himself/herself does nothing.
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