What Is Rights Issue in the Stock Market Author: @nkit A rights issue is a way for companies to raise money by offering existing shareholders the chance to buy additional shares at a special price. It is called a “rights issue” because shareholders are given special rights to purchase new shares before the company offers them to the public. Understanding rights issues can help investors decide whether it’s a good opportunity or one they want to avoid, based on their goals and risk appetite. How a Rights Issue Works When a company needs funds for growth, expansion, debt repayment, or other purposes, it may choose to issue new shares. Instead of offering them to anyone, the company gives existing shareholders the *right* to buy these new shares at a discount to the current market price. These rights are usually offered in proportion to the number of shares you already own. For example: If you own 100 shares and the rights issue is 1:2, you hav...