What Does Nil-Paid Mean?

Nil-paid means that no money has been paid for the shares. This is usually the case when shares are issued as part of a rights issue, where shareholders are given the opportunity to buy more shares in the company at a discounted price. The shares are issued with no money being paid upfront, but the shareholder will still be liable for any future dividends that are payable on the shares. What does non-renounceable mean? A non-renounceable rights issue is an invitation to existing shareholders to purchase additional shares in the company at a set price, usually at a discount to the current market price.

Non-renounceable means that shareholders who do not take up their rights cannot sell them to anyone else. This is in contrast to a renounceable rights issue, where shareholders can sell their rights on the open market.

Non-renounceable rights issues are typically used when a company needs to raise capital quickly and does not want to dilute the holdings of its existing shareholders.

Is it worth buying rights issue shares? There is no definitive answer to this question since it depends on a number of factors, including the specific rights issue, the current market conditions, and the investor's goals and objectives. However, as a general statement, it is usually not advisable to purchase rights issue shares since the market price of the shares is often significantly lower than the subscription price. Do ordinary shares pay dividends? Yes, ordinary shares pay dividends. However, the amount of the dividend and the timing of the payment vary greatly depending on the company. Some companies pay regular dividends, while others only pay dividends occasionally or not at all.

Can you cancel unpaid shares?

If you own shares that are not paid for, you may be able to cancel the shares. This is known as "rescission." Rescission is the process of undoing a transaction. In order to cancel the shares, you must have the consent of the company whose shares you own. The company may cancel the shares if they were never meant to be issued in the first place, or if the shares were issued incorrectly. If the company does not agree to cancel the shares, you may be able to get a court order to rescind the transaction.

Can you issue nil paid shares?

Nil paid shares are shares that have been issued but have not yet been paid for. They are typically issued to people who have a right to buy the shares at a future date, but have not yet paid for them. Nil paid shares can be traded on the stock market, but they are not as liquid as fully paid shares.