REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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Rights issues and open
offers
Adjustment is made to reflect two separate
elements. First, the bonus element of the rights issue, or open
offer, to existing shareholders, since this has a direct and
measurable impact on share price. Second, the assumed increase
in future earnings potential due to the enlarged capital base.
An open offer is technically very similar to a rights issue,
and the adjustment process is identical.
Calculation of adjustment factors
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