Financial Times FT.com

Rights issues: Profit from the need for cash

By Alice Ross

Published: June 11 2009 16:58 | Last updated: June 11 2009 16:58

Companies struggling with a lack of funding have been resorting to asking their shareholders for more cash, which is opening up opportunities for spread betters.

Rights issues have become an increasingly common feature of the corporate landscape, as companies seek to reduce their debt by offering shareholders the option of buying more shares at a cheaper price than those already on the market.

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