Right

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Related to Positive right: Negative right

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.

right

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

Right

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 ?
Moreover, armed conflict and its preparation by military spending also contribute to child hunger (Jenkins, Scanlan, and Peterson 2007)--that is, to what one may conceive of as the denial of a positive right.
7 does not confer a positive right to welfare: Gosselin v.
Resistance to Abigail Alliance flows in part from misunderstanding the right at issue--for example, confusing it with a positive right to medical care, or not recognizing that the right is only presumptive and may be limited for compelling reasons.
The jurisprudence discloses the narrower, negative liberty interpretation when a provision is ambiguous on precisely whether it affords a negative or positive right, while provisions that clearly impose positive obligations are treated with the generosity customarily accorded to human rights.
Is health care a positive right, like other rights specified under the Declaration of Independence, owed to U.
Peikoff is a particularly vocal critic of the recognition of a positive right to health care in the United States.
Then the Court added another, and more problematic, observation saying that the First Amendment "additionally encompasses the positive right of public access to information and ideas" (Kreimer v.
Davis: Things look very positive right now, due in large part to what lenders view as the excellent performance of LTC facilities over the last three to four years.
Alloa boss Barry Smith said: "We knew where we could hurt Cowdenbeath and we were positive right from the start.
She suffered terribly with the side effects of the transplant, yet she stayed so brave and positive right till the end.
Walking in at a precarious situation, Duminy looked positive right from the start and found adequate support from Taylor to put together an unbroken 110-run partnership and take Delhi to a competitive total of 145 for four.
Cook played a wonderful knock and was very positive right from the start.