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Related to Negative right: Positive right


Privilege granted shareholders of a corporation to subscribe to shares of a new issue of common stock before it is offered to the public. Such a right, which normally has a life of two to four weeks, is freely transferable and entitles the holder to buy the new common stock below the public offering price. See: Warrant.

Rights Offering

In stock, the ability of a shareholder to maintain the same percentage of ownership in a company should the company issue more stock by buying a proportional number of shares at or below the market price. This protects the investor from devaluation of his/her shares if the company decides to hold a round of financing. The purchase of this proportional number of shares usually takes place before the new issue is offered to the secondary market, and must be exercised before a certain date (known as the expiration date) if the shareholder is to maintain the same percentage of ownership. Rights offerings or issues are also called subscription rights or simply rights. See also: Anti-dilution provision.


A certificate that permits the owner to purchase a certain number of shares, or, frequently, a fractional share of new stock from the issuer at a specific price. Rights are issued to existing stockholders in proportion to the number of shares the stockholders already own. Rights then may be combined with cash to purchase the new shares or they may be sold to other investors. Rights usually have value because they permit the owner to purchase shares of stock at less than the market price. A right is indicated in stock transaction tables by the symbol rt, appearing after the stock's name. Also called stock right, subscription right. See also ex-rights, preemptive right.
Should rights be sold or used?

Rights offerings refer to the right of an investor to maintain his or her percentage ownership in a company when the company decides to issue new stock. Generally the company will do so at a discount to its market price to attract buyers, thus the existing stockholders' rights have value. The decision a rights holder must make is whether to put more money into the stock of this company or to sell the rights in the open market as compensation for the dilution of his or her percentage ownership in the company. TIP: Such a purchase depends completely on the individual's circumstances, goals, prejudices, and objectives—just as in any other stock purchase—and should be approached accordingly.

Thomas J. McAllister, CFP, McAllister Financial Planning, Carmel, IN


The opportunity a corporation gives a shareholder to buy additional shares at a special price for a limited time. Shareholders who don't use their rights can sell them to other investors.
References in periodicals archive ?
Legal writers have, however, pointed out that this 'exclusive right' embraces not only the negative right set out in the provision--the jus excludendi--consisting in the right to prohibit third parties from using a sign that is similar or identical, but also the positive right, that is to say the right actually to use that sign, namely, the jus utendi, which may also be exercised by licensing use of the trade mark.
My positive right that you pay me the $5 you promised yesterday is engendered by our negative right to liberty: nothing forbids you from binding yourself to do that, but once you do, you of course thereby underwrite a positive claim on my part, requiring a positive action on yours.
At the same time, the negative right enjoyed by CLS protected its ability to assemble free from interference by the state.
146) In enacting a scheme to regulate production, Parliament was required to reconcile the negative right of the accused to make full answer and defense and the complainant's negative rights to privacy, equality and security of the person.
He then devotes a subsection to the notion of human dignity, eventually concluding that inalienable and universal human rights are founded on inalienable and universal human dignity, which dignity imposes a duty of respect and a corresponding set of negative rights, the chief of these being the right to life.
388) This conclusion follows because the legislature when addressing a negative right prohibits the legislature's action entirely; however, when approaching a positive right, the court need only set the legislative process back in motion and allow the legislature to operate with broad discretion in fulfilling the constitutional rights, bounded only by certain limited parameters.
Suggesting that some complicated empirical argument is needed here, when in fact none is required, may weaken the strong case that exists for a right to freedom from poverty based on a negative right of noninterference.
It is a negative right since it only requires that others do not kill one.
In that respect, I think this was a positive, even though it's a negative right now, because I was able to throw strikes without walking anybody.
A negative right to health care means the right of a patient and doctor to pursue a course of treatment of their choosing without interference by the government.
Wade, (3) argued before the United States Supreme Court for a "liberty from being forced to continue the unwanted pregnancy" (4) She argued before the Court for a negative right, for a restraint on governmental interference in the abortion decision, not for a positive right of access or governmental entitlement to abortion.
Whatever seems negative right now is divine, because if there is a negative there has to be a positive.