[Featured Stock] Polaris Uno Hits Upper Limit Due to Ex-Rights Effect

The KOSPI opened at 2,441.21, up 14.32 points (0.59%) from the previous trading day, on the 30th at the Hana Bank dealing room in Jung-gu, Seoul. In the Seoul foreign exchange market, the won-dollar exchange rate started at 1,346.0 won, down 4.4 won. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Hwang Junho] Polaris Uno is hitting the upper price limit on the day of the ex-rights date for its free capital increase on the 1st.

As of 9:32 a.m. that day, Polaris Uno is trading at 1,810 won, up 415 won (29.75%) from the previous day.

On the 17th of last month, Polaris Uno decided on a free capital increase allocating 3 new shares for every 1 share. Usually, when the ex-rights date occurs, the trading price is artificially lowered according to certain criteria to balance fairness between existing and new shareholders. As a result, an optical illusion of a lower stock price occurs, sometimes attracting investors.