Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
what is a pro-rata non-renounceable entitlement issue?
How does it affect any current share holding?
2 Answers
- JoeyVLv 710 years agoFavorite Answer
It means that the company is giving you an offer to buy more shares (and possibly other stuff) based on your current holdings. Thus, if you have 10,000 shares the company is extending you (entitlement part) the offer to buy 10000 shares (the pro-rata piece) at $1 each. You can't sell the offer to somebody else (the non-renounceable part).
It means that your existing shares are diluted (which is bad) meaning that each of your existing shares owns a smaller piece of the pie. It means that the company has more money (which is good) so the pie is better. If the entitlement price is lower than the market price, it is very bad for your stock as it will trade down to be closer to the entitlement price.
