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Yes, you are on the right track. Sometimes the amount of shares you get offered have no bearing on the amount you already own. Here's an example of an offer I had: I've owned shares in a little gas company called Karoon for years, and some time last year they offered...

By taking up (buying) the new issues, it's a great way to increase your holdings in Argo at a discount and without any broker fees. If you don't want them, you can "renounce" them. It is definitely a benefit to take up every new issue which is offered at the maximum amount you can...