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TERP Stands for Theoretical-Ex-Right Price.
After the Right Issue of Shares to the existing share holders the new right shares are quoted a
little bit lower than the old shares in the security market (the market undervalue the right shares a little bit lower than the old price) but at a better price than the new public offer from the company at that stage itself
It stands for THEORETICAL EX RIGHT PRICE.
It is based on the number of shares outstanding and its based on company's market capitalization.when right s issue the stock price is not changed immediately it will change when expiration date approaches.Theoretically market price of a stock will have following new rights issue.
Word TERP stands for Theoretical-Ex-Right Price
Yes, Theoretical Ex-Right Price
