How Do Companies Raise Capital Via Stock Rights And Warrants?- Beyond Just Money

Companies generally raise additional capital by using additional shares. However, it results in diluting the existing value of stocks, raising concerns for shareholders. Hence, companies consider issuing stock rights and warrants to raise additional funds. These financial instruments give shareholders the pre-emptive right to buy additional shares directly from the company, generally at a discounted price. In today’s Beyond Just Money, we discuss how companies raise capital via stock rights and warrants?