Standard Chartered have been late to the Singapore brokerage scene but attracted a lot of retail investors with
- No minimum commission
- Zero custody fees
- Low fees
But how well does SCB handled cash calls/rights issues? Turns out if you intend to hold stocks with SCB long term it actually handles rights issues quite well.
Why does this matter
From time to time, the stocks that you are holding in your SCB account need additional funding other than capital garnered during IPO. The stock can either raised debts or raise more equity, the latter being rights issues.
Rights issues gives the existing shareholder the right to increase his number of shares by investing more capital in addition to his original share purchase. If the investor do not wish to, he can sell off the rights so that he will not be diluted after the rights issues.
Rights issues are very common ...
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