How to prevent getting wiped out by a rights offer

One fine day in March I checked the price of my favourite stock, Haitong Securities, a brokerage. It was taking a dive, which prompted me to check for news about the firm.

The company had just posted its year-end results. Its earnings were up 92 per cent. So far, so good. It had also announced a rights offer.

Rats.

Rights issues almost always drag down share prices.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1214719/how-prevent-getting-wiped-out-rights-offer