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Whipsaw Glossary

Currently viewing the definition of: Reversionary Bonus
 
 
 A bonus added to a with profits endowment policy that is payable on death or maturity. A reversionary bonus need not be declared every year but once it is, it cannot be withdrawn. 
 


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    • Rights Issue
      A rights issue provides an opportunity for companies to raise additional finance, either to fund growth or restructure it's finances, the former normally being seen as a positive step. Rights issues are so called because they give existing shareholders the right to buy shares. This offer will include an incentive in the form of a lower price compared to the current share price. As a result, the post-issue price will be lower than the pre-issue price due to the increased number of shares in issue. The issue will allow the shareholder to buy shares in proportion to their existing holding. For example a 1:5 issue entitles the shareholder to buy one new share for every five currently held. If the shareholder does not wish to take up the rights, they can be sold.