Purchase Solution

Rights offerings to raise capital are seldom used in the US

Not what you're looking for?

Ask Custom Question

Rights offerings are seldom used in the U.S. to raise equity capital, but they are often used in Europe. How might you explain that fact?

Purchase this Solution
Solution Summary

The solution discusses why rights offerings to raise capital are seldom used in the U.S., but they are in Europe.

Solution Preview

First of all, I am going to explain what are rights offerings. Rights offerings are the opportunities for the stockholders to buy additional shares of the stocks that they own at a discount price. This will enable the investors to get larger portion of their ...

Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • Stock Flipping Investments

    1.Rights offerings are seldom used in the U.S. to raise equity capital, but they are often used in Europe. How might you explain that fact? 2.If you were an investment banker, how would you determine the offering price of an IPO?

  • Dividend Yield & P/E Ratio & Rights Offerings

    253038 Dividend Yield & P/E Ratio & Rights Offerings 1.Stock in Rich Corporation is currently selling for $25.00 per share. The firm's dividend yield is 10%. A. If the firm distributes 40% of its earnings, what are its earnings? B.

  • techniques for managing inventory

    US issuers are able to efficiently raise large amounts of funds quickly and without expensive Securities and Exchange Commission (SEC) registration by selling paper, either directly or through independent dealers, to a large and varied pool of institutional

  • Product Life Cycle Paper

    (The country in which your selected organization is headquartered will be referred to as your "home country") The available financial sources in the home country, i.e., India are: 1) Capital Markets: As the company is listed, it can tap funds

  • Intro to business: most important institutions in the money markets; capital financing

    Few people, however, are aware of the power of private stock offerings in raising capital for business ventures. Contrary to popular belief, it has become easy to produce these private offerings and raise the money needed.

  • Benefits for an organization to raise capital by stocks

    What are the benefits for an organization to raise capital by issuing stocks as opposed to issuing bonds?

  • Debt & Equity Offerings / Cost of Capital & Decision Making

    The cost of capital of a firm is the total amount of costs incurred to raise money to acquire assets or other items for the running of the business.

  • Financial Management Questions on Net worth, Shares, exchange rates

    Net working capital, other than cash is, $1,900. Fixed assets are $20,700. How much cash does the company have? If current liabilities are $2,750, what are current assets? 2. Rights Offerings: Again, Inc., is proposing a rights offering.

  • Types of Stock Market Transactions

    If allied decides to sell (or issue) an additional 1 million shares to raise new equity capital, this transaction is said to occur in the primary market. 3. Initial public offerings by privately held firms: the IPO market.

View More Related Solutions