As a beginner to the stock market, before finding this forum i had the wrong impression about purchasing rights and the fact that i have to pay additionally to get the stock.
Anyway luckyly i only had to pay a small price for this learning experience .
I still have some questions though. so lets take the case of MARA RIGHTS issue
I actually had some MARA stock to which i got a letter to purchase RIGHTS.
MARAWILA RESORTS PLC
Company ID:- MARA
Date of Initial Announcement :- 05.01.2011
Proportion:- One (01) new ordinary shares for every four (04) shares held
Issue Price:- Rs.10/-
The number of shares to be issued :- 24,500,000 ordinary shares
EGM/ Provisional Allotment: 21.Feb.2011
XR: 22.Feb.2011
Dispatch of Provisional Letter of Allotment : 28.Feb.2011
Rights Trading Commences on : 07.Mar.2011
Renunciation: 14.Mar.2011
Last Date of Acceptance & Payment: 15.Mar.2011
1. if i needed to purchase stocks under the rights issue , i need to send the money for the rights before the 15th of March ( @ 10/=) and i would get the MARA stock ( say trading at about 12/= ) right ??
2. I noticed that some ppl sold their rights on the first rights trading day ? , how does that work ?. Could someone please explain that to me ?
Any advice would be appreciated