Rights issue is one of many events that cause volatility and speculation movement in the market. Usually companies would give a discounted rights issue to shareholders which serves as an incentive for shareholders to purchase the new shares by exercising their rights entitlement. Since its discounted, some of us (like myself) would want to snatch up more shares hence more rights entitlement. However we should all understand the process of rights issue so as to avoid novice mistakes like purchasing the shares after ex-rights and expect to have rights entitlement. Taking example from Cache Log Trust 18 for 100 Underwritten & Renounceable Rights Issue announced on 5th Sep 2017. Explanation of Jargon Underwritten It means that the rights issue is insured to raise a minimum capital sum. So in a event that the rights issue is unable to raise enough capital from shareholders, the balance would be paid by ......