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What does TERP stand for?

April 26, 2017stand terp

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What does TERP stand for?

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TERP is short for Theoretical Ex-Rights Price. Mathematically, the TERP equals the market cap pre a rights offering plus the proceeds raised in the rights issue, divided by the number of shares outstanding before the rights offering and the number of shares issued in the rights offering. The market cap is calculated as the closing share price on the day before detachment of subscription rights multiplied by the number of shares outstanding.