Jump to content
  • 0
Sign in to follow this  

Rights Issues

Question

My first post, not sure how this board works but was recommended to use it following a request for information from IG helpdesk.

 

My question, can someone tell me how it works if I have an open CFD position (Tlw) and the company decides to have a rights issue.

 

As I wish to participate what happens next? Any help would be appreciated.

Share this post


Link to post

3 answers to this question

Recommended Posts

  • 0

Hi 

 

In this community you can start a topic of discussion surrounding the markets or ask questions about functionality of the platform.

 

In answer to your question, a rights issue on a CFD account will react the same as the underlying market, in other words if you held the shares physically in a share dealing account.

 

To clarify, if you held 1000 shares and there is a rights issue ratio of 2 for 1. You would have the right to take up 2000 shares at the subscription price, you will also have the ability to trade out of the rights.

 

The only time this will be different to holding the shares physically will be when you hold a short position. If you held a short position until expiry there is the risk of being taken up against, meaning the Rights position will be converted into the underlying position at the subscription price going short. 

 

To take up rights on the account you would just need to contact us either over the phone or via email to confirm your instruction.

 

I hope this answers your question. If you have any further points you wish to discuss please contact us.

 

Thanks!

Chris

Share this post


Link to post
  • 0

Does IG list companies separately offering  rights issues or does one have to watch for company announcements

Share this post


Link to post
  • 0

Hi 

 

We do not list companies who are offering Rights Issues or going through any type of corporate action.

 

If you were an existing holder of the company on the ex date, then you would be informed about an upcoming Rights Issues via an email from our corporate actions team.

 

If you are not a holder of a company that is issuing a Rights Issue then you would have to keep up to date with company announcements. 

 

If you are wanting to keep up to date with news on shares, please click here for news and earnings reports from our analysts.

 

Thanks!

Chris

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Topics
      7,780
    • Total Posts
      40,622
    • Total Members
      50,993
    Newest Member
    Ritufx
    Joined 22/11/19 02:57
  • Posts

    • Well Bitcoin broke $8k and is currently around the $7.5k price area. It is not looking good at all.  It seems my $6.3k - $6.6k price area which I think could be the bottom or this specific downward move looks more likely now. I mentioned this price area on Monday (a few posts above) and now I think unless there is some serious buying or spectacular news followed by some serious pumping and short covering then Bitcoin is heading towards this price zone. 
    • There are many different ways to trade and applying or adopting trend following principles is merely just one such way. Trading more frequently does not guarantee any more success but it can increase the chances of making more losses if you do not have a robust trading system that is based on a sound trading plan. Trend following does not have to involve regular or frequent trading. That is the beauty of it. You can merely wait until you identify a trend which you wish to trade. Of course they will not all be successful as the trend could reverse sharply against you, it could be a false trend (looks like a trend but not) or simply the volatility could stop you out.  Day trading really is for full time traders in my personal opinion unless you have an expensive automated system which has been tested rigorously or you are an exceptional trader which can consistently make profits on most days without gambling, hoping or relying on luck.  Trend following suits me based on the time I have available to trade. I accept it is not for everyone but I believe all trading includes an element of trend following. Just how much depends on your trading style and methodologies adopted. 
    • The 20, 50 and 100 DMA curves on the 'daily' timeframe are sloping upwards which is extremely bullish and this trend has been very nice indeed.  When I talk about 'Strongest Trending Assets' in my other threads then I am suggesting those that a lot of traders do not spot but they exist and are available not only to trade on IG's platform but one must be able to spot and identify them. 
×
×