Should I buy my own rights issue or distribute it automatically?

Rights issue is the right of a listed company to issue new shares to its original shareholders, who can subscribe for a certain number of shares below the market price. So, should the rights issue be bought by yourself or automatically? Let's look below.

Should I buy my own rights issue or distribute it automatically?

To buy their own stocks, investors need to place their own orders manually, and the rights issue operation is also very simple. As long as you hold this stock on the registration 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. There is no handling fee for the rights issue.

Of course, some investors may not have enough funds to share the rights issue. If they have no money to participate in the rights issue before the registration date, they can sell some positions to pay for the rights issue. For example, 5000 shares in Man Cang cannot participate in the rights issue, and 1 000 shares are sold at the market price, and then the rights issue comes back at a discount.

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. After the rights issue, the rights issue will be removed, causing the stock price to fall. If you don't participate in the rights issue, because the number of shares remains unchanged, it will directly cause losses.

For the information of rights issue, listed companies will constantly issue announcements to remind them, and securities companies will generally prompt them 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.

In addition, many investors will be concerned about whether the stock will go up or down after the rights issue. Judging from the historical law, the trend of stocks has gone up and down after the rights issue. The rights issue is not the decisive factor of the trend, and there are many factors that affect the stock price. Investors should analyze from many aspects.