Share Purchase Right

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Share Purchase Right

A right attached to some shares giving the shareholder the ability to buy more shares of the same stock at a given price. It is similar to a stock option, but is distributed to existing shareholders rather than bought and sold. However, share purchase rights may be traded like any other option.
References in periodicals archive ?
The preferred share purchase rights would only be activated if triggered by the plan.
In connection with the expiration of the rights plan, Netflix will be taking routine actions to voluntarily deregister the related preferred share purchase rights under the Securities Exchange Act of 1934, and to delist the preferred share purchase rights from NASDAQ.
The preferred share purchase rights are not intended to prevent or discourage a takeover and the Board of Directors would carefully consider a fully financed offer for all of the Company's shares.
The Preferred Share Purchase Rights are designed to assure that all of our stockholders receive fair and equal treatment in the event of any proposed takeover of the Company and to guard against abusive tactics to gain control of Lear Corporation without paying all of our stockholders a reasonable premium for that control," Way said.
AMEX: SSY), announced today that its Board of Directors unanimously adopted a Shareholder Rights Plan in which preferred share purchase rights will be distributed to shareholders of the Company as a dividend at the rate of one Right for each Common Share held as of the close of business on February 10, 2004.
Nasdaq: DAVL), the nation's largest independent provider of payphone services, announced today that its Board of Directors has authorized the termination of its preferred share purchase rights plan and the redemption of all outstanding preferred share purchase rights.
UAC further announced that, upon the effective date of the Plan of Reorganization, UAC's Shareholders' Rights Plan originally adopted in 2001, will be deemed rejected and all related share purchase rights will terminate.
The Board redeemed the rights previously issued to holders of its common stock under a share purchase rights plan adopted in 1988 and adopted a new rights plan.
The preferred share purchase rights will replace similar purchase rights that were distributed pursuant to the Shareholder Rights Plan adopted in 1992, which will expire on December 23, 2002.
The distribution of the preferred share purchase rights is not taxable to the company's shareholders.
Nasdaq:SOFN) has declared a dividend distribution of one Preferred Share Purchase Right on each outstanding share of SoftNet common stock pursuant to a Preferred Share Purchase Rights Plan.
NYSE: NII) announced that its board of directors late yesterday took action to redeem all of the outstanding rights issued in connection with the company's Preferred Share Purchase Rights Plan as of June 1, 1992.