It is always exciting to learn new stuff about the invesment world for a young person like me who is just starting out. And there are far too many financial terms out there that don't really make sense to me and sometimes can be a bit intimidating. I can admit though that the lack of due diligence to research is one primary factor for this.
Just like the stock rights offer (SRO) of MBT. I've seen a few notification about it from COL Financials before but I just kept on ignoring them. I was clueless how it works until finally I braved to diligently research in the web.
To put it simply, my understanding tells me that SRO is like a promo where the company will sell its stocks at a discounted price for a limited period of time to its existing shareholders initially before it gets offered to the open public.
And there's a limit to how many you can buy depending on how many existing shares of the company you currently hold. The company provides the ratio. For example 1:6 means for every 6 existing shares, you are entitled to 1 SRO share. So if you have 600 existing shares, then you're entitled to buy 100 SRO shares.
When I subscribed to MBT SRO the discount is P20 per share!
