Stock Rights Issue
Rights are offers that allow existing stockholders to buy additional shares at a predetermined price, for a set time period. Shareholders do not have to exercise these rights. They could let them expire. Alternatively, they could be traded in the open market
Why do companies offer rights? Sometimes tapping existing shareholders may be the best way to raise additional capital if they have difficulty attracting outside investors. For this reason, heavily indebted businesses will sometimes use a rights issue to pay down their obligations.
Operating profit is the profit generated from the core business of a company before accounting for interest and taxes.
Vertical integration occurs when a company buys and controls other businesses along its supply chain.
Foreign Direct Investment is a form of cross-border investment.
A type of option where the payoff depends on both the price levels of the strike and the underlying asset, like standard options. If the binary option expires in the money, the trader will always receive a fixed $100 compensation per contract. If the option expires out of the money, the trader receives nothing.
Current assets are all of the assets a company uses to fund its daily operations. These are the assets the company could convert into cash within a year in the normal course of business.
A current account deficit occurs when a country spends more money on the goods and services it imports than it receives for the goods and services it exports.
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