Do I need to buy my own rights issue?

Rights issue is a way for listed companies to raise funds. According to the needs of the company's development, it is a financing behavior for a listed company to issue a certain number of shares at a certain price lower than the market price according to the regulations. So, do investors need to buy their own rights issue? Let's get to know each other.

Do I need to buy my own rights issue?

Stock allotment requires investors to buy it themselves. Stock allotment cannot be completed automatically through trading software, and stock allotment is free to choose. For the original shareholders, they can choose to participate in the rights issue or give up the rights issue, so the rights issue is bought by the investors themselves. The operation of rights issue is very simple. As long as you hold this stock on the record date, your trading software will show how many shares you can get. Then, during the allotment payment period, you can enter the allotment code and allotment price and buy according to the maximum allotment. In addition, there is no handling fee for the rights issue.

For investors who participate in the rights issue, it can help investors reduce the cost of holding shares. The rights issue itself means that investors can buy shares of listed companies at a price lower than the market price. Of course, if investors do not intend to participate in the rights issue, they must sell their shares before the rights issue, otherwise they will suffer losses. After all, ex-dividend and ex-dividend will cause the stock price to fall, and investors who do not participate in the rights issue will suffer losses.

It should be noted that the time allocated is limited. Those who fail to pay within the time limit will be deemed to have given up the placement automatically, and there is no way to make up for it in the future. When a listed company prepares to issue a rights issue, it will continuously issue a notice to remind it, and securities companies will generally prompt it in the market software and official website. In addition, some securities companies will also inform investors by telephone, SMS, etc., and investors should complete the rights issue operation on the deadline of rights issue.