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The example suggests that shares can be sold at a discount via rights issues. Is it not illegal to do so?
Where have you heard that it is illegal to do so? It isn’t illegal and shares are offered at a discount to their market value to encourage the shareholders to purchase the shares. It therefore ensures that the required amount of funds are raised by the company to invest in projects to increase shareholder wealth.
Thanks
It was said in the LW paper that the shares couldn’t be sold below their par value (ie they could not be sold at a discount). I believe it was even mentioned in the FA paper.
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