Question

An investor exercises the right to buy one additional share at $20 for every four shares held. how much should each share be worth after the rights issue if they previously sold for $50 each?

Answer 1

$45.00 should each share be worth after the rights issue if they previously sold for $50 each.

What is share?

A share is a financial market unit used in mutual funds, limited partnerships, and real estate investment trusts. The term "share capital" refers to all of an enterprise's shares. A shareholder of the corporation is someone who owns stock in the company.

A share is a type of ownership unit that represents an equal amount of a company's capital. A share entitles the shareholder to an equal claim on the company's profits and losses. There are two types of shares: equity shares and preference shares.

A company's shares signify its ownership. When a person purchases stock in your company, they become a shareholder. Shareholders elect who runs a firm and participate in critical decisions.

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