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The Efficiency of China's Stock Market
book

The Efficiency of China's Stock Market

by Shiguang Ma
November 2017
Intermediate to advanced content levelIntermediate to advanced
302 pages
16h 35m
English
Routledge
Content preview from The Efficiency of China's Stock Market
Semi-strong Form Efficient or Not? Tests o f Bonus and Rights Issues
223
8.3 Reaction of returns to the announcement of rights issues
R i g h ts i s s u e s a n d i n fo r m a t io n a l c o n t e n t
A rights issue is an issue of new shares to existing shareholders on a pro-rata basis.
With a rights issue, shareholders receive the rights from the company to subscribe
for additional shares at a subscription price and in a fixed ratio to the number of
shares already held. The company therefore has to set a subscription price and a
fixed ratio for the rights issue. In China, the subscription price for the rights issue
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Publisher Resources

ISBN: 9781351146913