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Related to Political rights: civil rights


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 ?
Provincial Minister Anisa Zeb while highlighting the significance of working group said that it was imperative that civil society and parliamentarians should have close coordination to protect the civil and political rights of women, minorities and youth.
Khalfan Khattak in his introductory remarks said that the joint working group of parliamentarians and civil society members was formulated to address the issues relating to the realization of civil and political rights of women, youth and minorities.
Property rights and political rights both have powerful beneficiaries.
An explanatory note to the document says that in view of Ukraine's inability to protect human rights to the fullest extent in compliance with its obligations under the Convention for the Protection of Human Rights and Fundamental Freedoms, the International Covenant on Civil and Political Rights and the European Social Charter, in its revised version, and in connection with "the objective need to take measures to repel armed aggression of the Russian Federation, Ukraine has to temporarily rescind its commitments to upholding certain human rights (in the zone of military operations) within the limits permitted by relevant international agreements".
It affirmed that women's attempts to receive their rights started as early as the pre-Independence period, continued after it and culminated in them being granted political rights through the constitution of 2002.
He said that the Government have snatched their rights, Ministry, Funds, political rights and even have given Sanitation department on Contract.
It also scored 1 on civil liberties and political rights.
Lack of access to their political rights had kept away from the decision-making processes, especially in elections.
The Presidency's Initiative to support Egyptian women's rights and freedoms organised a workshop on Tuesday under the patronage of President Mohamed Morsi to discuss women's political rights.
Freedom in the world 2012; the annual survey of political rights & civil liberties.
The letter said that the International Covenant on Civil and Political Rights (ICCPR) should be ratified, in order to further promote and establish the principles of human rights and constitutionalism in China.
Nowhere in the document is there any granting of political rights to Arabs.

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