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What is the difference between a renouncable and non-renouncable rights issue?

Thursday 21st February 2002

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Q: What is the difference between a renouncable and non-renouncable rights issue?

A: In a renouncable rights issue, participation by share holders is optional. You can choose to exercise your rights to avoid dilution of your holding.

In a non-renouncable rights issue, participation is mandatory. If you don't wish to participate you should sell your share holding or the board of directors might sell them on your behalf.

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