I understand, rights issue means If I own a company, I am given an offer to buy more shares at a different price (usually lower than market price, right?).
My questions
1.) If a company offers me to buy share at 100rs discount to market price. And I don’t buy the shares. Does that mean, I am basically losing 100rs? As I can buy the share in rights issue and sell at market price? If I decide not to buy, am I given any compensation? If not, this means, I can never “buy a stock and forget about it”??? Since, I need to check for rights issue continously??
2.) How is the price adjusted after a rights issue in historical data? Let’s take example of IDEA. On 29 march 2019, it declared Rights 87:38 @ Premium Of Rs 2.50 Per Share. How did it impact the stock price? Can someone please explain step by step calculation???