To decide a price for a future issue, and the allocation of shares, financial advisers may contact major investors and ask them to place bids over a period of a few days. What term is used for this approach?
An investor does not have the cash to buy shares in a 5 for 1 rights issue. The theoretical value of the share ex- rights is £3.20, and the subscription price is £3. What is the value of a right on one share?