I have shares in Banco Santander. Every few months they offer a rights issue which allows me to have those rights converted into new shares without me having to pay anything extra.
My question is where to these new shares that they give me come from and do they dilute existing...
Im new to the stock market but understand the concept of 'Rights Issue'; However im unaware of how to buy my rights issue? Should I receive any mail? or do I just go through a broker (I use directshares-Stgeorge)
Any help would be great as Im freaaakkking out!
I have a question regarding rights issue.
If a company issues rights to buy stock at say $4.00 and the stock price on the market is $12. Does that mean I can buy a thousand shares at $4.00 and then sell them instantly on the open markets for $12?
I was stopped out of santos on the 13th may and have just received the rights issue entitlement / acceptance form but the record date for the entitlement is 14th / may. I wouldnt of thought I was eligible. Could someone briefly explain? I will ring computershare monday but am curious.