Forex currency trading system – This would mean selling your 10 shares at 25, thus grossing $250.


Purchase of rights for, say, $10 would permit subscribing to 10 shares at $23. Rights plus new stock would cost $10 less than the proceeds of your sale, a 4 per cent profit. Rights also offer opportunities for arbitrage, which is acting on differentials that arise, usually in different markets, by selling high in one place while buying low in another. In so far as rights are concerned, arbitrage usually works this way. Assume the old stock is selling at $50 "ex-rights" (without the rights privilege). The new stock will be offered at $45.

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