Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK Authorities Seeking To Speed Up Rights Issue Process

Even though they are not directly linked to the way in which the stock market works and the procedures used, it seems as though the movers and shakers at Number 11 Downing Street have taken it upon themselves to suggest changes to the current system. While some are a little surprised at the move, the City seems to be giving the idea its backing as the timescale and cost of the current rights issue process is long and very expensive.

The Treasury seems to have plumped for the Australian version which allows companies to raise funds from institutional shareholders at short notice, prior to offering private investors the chance to participate. This allows the companies involved to receive their funds quicker and also makes the need for a costly prospectus redundant.

The move in the UK seems to have been prompted by the recent turmoil in the banking sector which saw groups announce fund raising exercises with the full backing of shareholders only to see market sentiment change and many share prices come under severe pressure. There is also talk that the Australian system would also reduce the long term drip feeding affect of short sellers who have been causing havoc in the markets of late.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details