Jump to content
  • 0

Rights Issues



My first post, not sure how this board works but was recommended to use it following a request for information from IG helpdesk.


My question, can someone tell me how it works if I have an open CFD position (Tlw) and the company decides to have a rights issue.


As I wish to participate what happens next? Any help would be appreciated.

Link to comment

3 answers to this question

Recommended Posts



In this community you can start a topic of discussion surrounding the markets or ask questions about functionality of the platform.


In answer to your question, a rights issue on a CFD account will react the same as the underlying market, in other words if you held the shares physically in a share dealing account.


To clarify, if you held 1000 shares and there is a rights issue ratio of 2 for 1. You would have the right to take up 2000 shares at the subscription price, you will also have the ability to trade out of the rights.


The only time this will be different to holding the shares physically will be when you hold a short position. If you held a short position until expiry there is the risk of being taken up against, meaning the Rights position will be converted into the underlying position at the subscription price going short. 


To take up rights on the account you would just need to contact us either over the phone or via email to confirm your instruction.


I hope this answers your question. If you have any further points you wish to discuss please contact us.




Link to comment



We do not list companies who are offering Rights Issues or going through any type of corporate action.


If you were an existing holder of the company on the ex date, then you would be informed about an upcoming Rights Issues via an email from our corporate actions team.


If you are not a holder of a company that is issuing a Rights Issue then you would have to keep up to date with company announcements. 


If you are wanting to keep up to date with news on shares, please click here for news and earnings reports from our analysts.




Link to comment


This topic is now archived and is closed to further replies.

  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...