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Corporate Actions
Rights Issue
Definition
An offer letting existing shareholders buy new shares at a discount, pro-rata to their holding. Rights issues dilute non-participating holders and often pressure the share price — favourable conditions for short sellers.
Related Terms
Share Purchase Plan
An SPP is a placement to retail shareholders capped at $30,000 per holder. Typically priced at a discount to market and used alongside institutional placements to top up capital.
Capital Raising
Any issuance of new equity, including placements, rights issues, SPPs, and convertibles. Short sellers watch for raisings as they signal balance-sheet stress and often dilute existing holders.
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