Unveiling the Mystery: What’s in a Free Share?§
Imagine waking up one fine Tuesday morning, relishing your coffee, and then bang! You suddenly realize you’ve got free shares. Yes, free – nada, zilch, zero costs involved! That’s the magical, mystical wonder of free shares under a rights issue. Let’s unravel this fantastic phenomenon.
🪄 Definition for Muggles§
So, what exactly are free shares? In accounting terms, these are shares bestowed upon the lucky shareholders without any moolah in exchange – not a penny, nickel, or dime. It often happens as part of a rights issue, sort of like an Oprah episode: *