Simply put, if you ignore the rights issue. You are screwed big time. Because the stock will hit anyway.
If you accept the right issue, you will be taxed on the new shares issued by the company.
Before doing anything, check out why the company is doing rights issue, is it pay off debt? (which is troublesome) or is it to start a new project and need extra funds? (find out what the project is) or it to aquire another business? (find out why this business)
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