Whether issuing rights shares is "right" or not depends on the specific circumstances and the motivations behind the issuance.
Rights shares are a type of equity financing where a company offers existing shareholders the opportunity to purchase additional shares in proportion to their existing holdings. This can provide a company with additional capital for growth or to address financial challenges.
However, the issuance of rights shares can also have negative impacts, such as diluting the value of existing shares, causing a drop in the share price, and reducing the earnings per share.
Ultimately, the decision to issue rights shares should be based on careful consideration of the company's financial and strategic needs, and with the aim of creating value for both the company and its shareholders. Before issuing rights shares, it is important to consider all potential outcomes and consult with legal and financial advisors as necessary
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