How To Calculate Theoretical Ex Rights Price? - The Friendly Statistician

Описание: How To Calculate Theoretical Ex Rights Price? Understanding stock rights issues is essential for investors who want to navigate the complexities of the market. In this video, we will provide a clear explanation of the Theoretical Ex-Rights Price (TERP) and how it is calculated. We’ll start by defining what a rights issue is and the purpose it serves for companies and shareholders.

Next, we will outline the key information needed to perform the calculation, including the current market price of shares, the number of existing and new shares, and the subscription price for the new shares. Through a practical example, we will walk you through the step-by-step process of calculating the TERP, ensuring you grasp each component along the way.

This calculation is particularly useful for investors looking to understand how a rights issue can affect the value of their investments. By the end of this video, you will have a solid grasp of how to determine the theoretical value of shares after a rights issue, allowing you to make informed decisions in your investment journey. Don’t forget to subscribe to our channel for more informative content on stock market strategies and financial literacy!

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