Share Purchase Rights

Share Purchase Rights

A type of security that gives the holder the option, but not the obligation, to purchase a predetermined number of shares at a predetermined price, similar to a stock option or warrant. These rights are typically distributed to existing shareholders, who have the ability to trade these rights on an exchange.

Notes:

The rights only give you the ability to purchase the shares, you still must pay for the shares if you want to redeem the rights.

See also: Rights, Share