The price of a share following a rights issue is known as what?
A)The issue ratio
B)The issue price
C)The rights issue cleansing price
D)The theoretical ex- rights price

Question

Quizplus · Accepted Answer

The theoretical ex-rights price (TERP) is the price at which a share is expected to trade following a rights issue. It accounts for the dilution of shares due to the issuance of additional shares at a discount during the rights offering.

The Price of a Share Following a Rights Issue Is