Riskisijoille

Riskisijoille refers to a concept in Finnish business and finance, specifically relating to a type of share split or issuance of new shares to existing shareholders. Literally translating to "lottery shares," riskisijoille is a unique mechanism used by some Finnish companies to distribute new shares to existing shareholders.

Under this system, a company issues new shares to its existing shareholders in proportion to their current holdings. This means that shareholders with a larger stake in the company receive a proportionally larger number of new shares. The idea behind riskisijoille is to provide existing shareholders with more shares, without introducing new shareholders or diluting their equity.

Riskisijoille is often used as a way to recapitalize a company, increasing its equity base, or to reward loyal shareholders. The mechanism is popular in Finland, with some large companies, such as Nokia, having utilized it in the past. In order to implement riskisijoille, the Finnish company law requires the issue to be approved by the general meeting, and also must meet certain other conditions set by Finnish law.

In practice, riskisijoille works by the company declaring a certain number of new shares, which are then distributed to existing shareholders in proportion to their holdings. The process is typically facilitated by a stock exchange, with the new shares being traded on the same market as the company's existing shares. Riskisijoille can have implications for the pricing of a company's shares, and may also affect the capital structure of the company. Overall, riskisijoille is a specialized mechanism used by Finnish companies to manage their capital structure and reward existing shareholders.