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Ep 62. SuperInvestor Series: Joel Greenblatt

Focused Compounding

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The Importance of Rights Offerings

A rights offering is when existing shareholders are offered the chance to get additional shares in a company. If everyone subscribes to it, if all the existing shareholders decide to exercise their rights, they'll all just end up putting money into the company. But some people will not exercise the right and that means that your interest can increase.

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