Morningstar, Inc. Commentaries
Apr 25, 2014
Click here to access Rights Offerings: Have Your Cake and Eat It, Too
Most closed-end fund, or CEF, investors are familiar with the mechanics behind a fund's IPO but know decidedly less about rights offerings. To be sure, IPOs are more prominent and typically outnumber rights offerings in terms of both frequency and size, but when your fund announces a rights offering, what is it doing? And what should you, as a shareholder, do?