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Please use this identifier to cite or link to this item:
http://hdl.handle.net/1842/1816
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| Title: | Placed Shares the Role of the Discount in UK Rights Issue and Open Offices |
| Authors: | Armitage, Seth |
| Issue Date: | 2000 |
| Publisher: | Management School and Economics. The University of Edinburgh |
| Series/Report no.: | CFMR
00.02 |
| Abstract: | The typical seasoned offer in the UK by smaller listed companies is no longer a conventional
rights issue but an issue involving placed shares. Discounts provide substantial rewards to
buyers of placed shares, and are related to proxies for costs of investing in the issuer. The
difficulty of rewarding buyers of rights in the market is seen as a major disadvantage of the
rights issue method. The study finds a negative relation between the discount and market
reaction to an issue, which possibly reflects adjustment of the offer price for anticipated
change in the share price. |
| Keywords: | econonics |
| URI: | http://hdl.handle.net/1842/1816 |
| Appears in Collections: | Business and Management Research Publications
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