Longshott, you may have misquoted me here! [Nowhere have I said...

Longshott, you may have misquoted me here! [Nowhere have I said that the value of your existing holding doesn't change if the price increases; nor that buying more shares at a lower price doesn't change the value of your holding]

You mentioned "...the potential exit point to return my capital invested is dramatically lower."

Yes, it's easier to get to breakeven, that is true.

But that positive potential benefit is offset by the risk of compounded losses should the share price head south. By your same "leverage" argument, the stock now doesn't have to fall as much, in order to incur the same losses as you would have with your existing holding.

It's a leveraged potential gain, with a leveraged potential pain. And it all boils down to whether the stock is a good purchase at the rights price. That's because this additional gain or additional pain accrues to the rights parcel ONLY; and hence the rights issue should be looked at completely separately to your existing holding.