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发表于 2010-8-19 08:43 AM
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Can I ask a basic (maybe silly) question about "Transferable Rights Offering"?
CAF is doing a transferable rights offering of its shares of common stock. The record date is August 18, 2010 . One transferable right for each whole share of common stock held. Three Rights will entitle the share holder to purchase one share of common stock at the subscription price.
The Offering will only be made on August 23, 2010. The subscription price will be determined based on a formula equal to 90 percent of the average of the last reported sales price per share of the Fund's common stock on the NYSE on the Expiration Date and the four preceding trading days.
Assuming the market remains unchanged, how the stock price would adjust itself on August 19 and on August 23 due to this offering?
Thanks in advance! |
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