CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

Rights issue definition

A - B - C - D - E - F - H - I - L - M - N - O - P - R - S - T - U - V - W

See all glossary trading terms

A rights issue is the term for when a company offers more of its shares to current shareholders, usually to raise extra capital. It differs from other additional shares offerings, where shares are available for any investor willing to buy.

The shares in a rights issue are not taken from the current outstanding shares of the company, but are instead taken directly from the company itself. By offering the new shares to existing shareholders exclusively, the company will hope to avoid diluting its stock too much.

Typically, a rights issue will offer shares at a price lower than the current market price, with a stipulation that the rights must be taken up within a time period. As an extra incentive, sometimes the shareholders will be able to sell the additional shares on to the general market.

Help and support

Get answers about your account or our services.

Get answers

Or contact us on +971 (0) 4 559 2100 or helpdesk.ae@ig.com.

Our office is open 5 days a week, Sunday to Thursday from 8am to 7pm (Dubai time). Support line is available 24hrs a day, 7 days a week, except for Saturday from 1am to 11am (Dubai time).

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.