What are these Rights that HBOS are selling?

Question

The way I see it they are selling the right to buy more shares at a specified price. If thats the case where are the shares coming from, do they just produce more shares to sell, if so how do they do that. I am confused as to whether I should buy my offered rights or no

Answer 1

it is just that, the right to buy the shares at a"reduced "price but they are so poor t the moment that the price they set isnt much better than what they are trading at. these are totally new shares that they are allowed to conjure up to raise more money. if you have had your letter telling you how many you can buy you will have a booklet that tells you your options. personally, unless they rise in price on the stockmarket in a big way, i wont be taking up my rights. one of the options is to sell those rights to someone else (halifax do it for you) but you have no way of knowing how much you will get.  THIS IS NOT ADVICE, JUST ME TELLING YOU WHAT I AM DOING! i wish i had sold them when they were £11!