Many investors have very little exposure to stock matters, so they don’t know much about the ex-dividend date. So today I would like to introduce to you what rights issue and rights issue are? and the difference between rights issue and rights issue.

What is rights issue? Rights issue means that a listed company issues new shares for existing shareholders to subscribe for. Shareholders can subscribe for new shares based on their shareholding ratio.

A rights issue will result in an increase in the number of shares, which will reduce the net assets per share and therefore the share price.

If shareholders subscribe, they will need to pay a certain amount of funds; if they do not subscribe, shareholders' rights will be diluted.

Allotment of shares is a financing behavior that allocates a certain number of new shares to original shareholders in proportion to their shareholdings at a certain price lower than the market price. It is generally inclined to large enterprises such as investment banks, securities firms, and funds, and does not involve the balance of the interests of new and old shareholders.

Rights issue and rights issue are both terms in the stock field. The difference between the two is: 1. Rights issue: It refers to the act of a listed company issuing new shares for existing shareholders to subscribe. Shareholders can subscribe for new shares in proportion to their shareholdings. In fact, it is a large-scale

Shareholders ask minority shareholders for money.

2. Allotment of shares: It is a financing behavior that allocates a certain number of new shares to the original shareholders at a certain price lower than the market price based on their shareholding ratio.

When a listed company announces that it is issuing shares, existing shareholders will receive corresponding rights rights. If shareholders do not want to issue shares, they can give up this right, or sell this right to cash out the equity in the market.

So why do listed companies need rights issues? In fact, whenever listed companies have funding needs, such as raising funds to repay debts, expand business, mergers and acquisitions, enrich capital, increase investment, etc., they will require existing shareholders to raise funds through rights issues.