Theoretical Ex-Rights Price
The market price that a stock will theoretically have following a new rights issue. Although the stock price is not likely to change immediately following the new rights issue, it will change as the rights expiration date approaches. Investopedia Says:
The theoretical ex-rights price is based on the company's market capitalization and the number of shares outstanding. For example, if a new rights offering gives buyers the right to purchase 25% more shares than there are currently outstanding, the market price of the stock will theoretically be 25% less in the future than it is today (assuming 100% of the new rights will be exercised by the holders). Related Terms:
Detachable Warrant
Ex-Rights
Ex-Warrant
Market Capitalization
Rights
Rights Offering (Issue)
Warrant |