Rights issue and additional issuance belong to the issue of new shares, which refers to the public offering of new shares by listed companies to the society. A rights issue is a rights issue to the original shareholders, and an additional issue is a sale of shares to the whole public.
Rights issue: Shareholders pay the rights issue according to the rights issue price and the number of rights issues. The original shareholders can subscribe for the newly issued shares in proportion to the allotment, or they can give up. The number of shareholders has not increased, but the total share capital has increased. If all shareholders participate in the placement, the shareholding ratio has not changed; If some shareholders give up the placement, the shareholding ratio of shareholders who give up the placement will decrease, and the shareholding ratio of shareholders who participate in the placement will increase.
Additional issuance: the object of additional issuance is the whole public. With the increase of the number of shareholders, the total share capital also increases, and the shareholding ratio of shareholders depends on the number of new shares subscribed.