Shares rights, keep your money!

Story link: Shares rights, keep your money!

While shares rights are generally a good option for investors, they need to be careful in times of instability like now.

While the shares rights will allow investors to purchase the new shares at a highly discounted rate, its advisable to treat this as a new investment rather than getting excited over the discount!

Shares rights, keep your money!

There’s about to be a rush of companies issuing new shares. And it could well be a trap for investors.

Companies use rights issues to try to tap their shareholders for cash by offering them first dibs on new stock offerings, normally at a chunky discount. And some analysts reckon this dash for cash is a harbinger of better times ahead. (More on that bullish view in a minute).