Learn › Signals / technical / historical read-outs
Preferential issue
The company creates brand new shares and sells them to one chosen buyer — often a big investor or a promoter. Nobody else gets to buy. Because more shares now exist, your slice of the company gets smaller.
Example
A company with 100 shares issues 12 new ones to an investor. You still hold what you held, but it is now a smaller fraction of the business.
Worth knowing
Not automatically bad. The company gets cash, and a respected investor buying in is a vote of confidence. It depends on who bought and why.