Thursday 1 April 2021

Wealth Management Terms

  1.  Rights Issue: https://g.co/kgs/SvDstx  Good to raise capital. A rights issue or rights offer is a dividend of subscription rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it is a non-dilutive pro-rata way to raise capital.
  2. Scrip Only Dividend: https://en.wikipedia.org/wiki/Scrip_issue The company issuing the scrip shares has now expanded the number of shares in existence, but not increased the value of the company
  3. Open Offer: An open offer is a secondary market offering, similar to a rights issue. In an open offer, a shareholder is allowed to purchase stock at a price that is lower than the current market price. The purpose of such an offer is to raise cash for the company efficiently. https://www.investopedia.com/terms/o/openoffer.asp#:~:text=An%20open%20offer%20is%20a,cash%20for%20the%20company%20efficiently.
  4. Closed-End: Organisations such as companies which are a fixed size as determined by their share capital. Commonly used to distinguish investments trusts (closed-end) from unit trusts and open-end investment companies (OEICs) (CISI glossary of terms)
  5. Commercial Paper (CP):Unsecured bearer securities issued at a discount to par by PLCs with a full stock exchange listing. CP does not pay coupons but is redeemed at par.(CISI glossary of terms)



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