Right

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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 classic literature ?
Matthew Maule," replied the carpenter,--"son of him who built the house,--grandson of the rightful proprietor of the soil.
While I make no recommendation of amendments, I fully recognize the rightful authority of the people over the whole subject, to be exercised in either of the modes prescribed in the instrument itself; and I should, under existing circumstances, favor rather than oppose a fair opportunity being afforded the people to act upon it.
Into my house come bold and free, Its rightful mistress there to be'.
However little known the feelings or views of such a man may be on his first entering a neighbourhood, this truth is so well fixed in the minds of the surrounding families, that he is considered the rightful property of someone or other of their daughters.
It is because I am a prince, your son, and the rightful heir of your kingdom, that I freely take upon me the calamity of your subjects," answered Theseus, " And you, my father, being king over these people, and answerable to Heaven for their welfare, are bound to sacrifice what is dearest to you, rather than that the son or daughter of the poorest citizen should come to any harm.
By that supineness the sovereignty in the country has been virtually lost to the United States; and it will cost both governments much trouble and difficulty to settle matters on that just and rightful footing on which they would readily have been placed had the proposition of Mr.
I'd niver wish us to leave our lads a sixpence but what was got i' the rightful way.
On some flimsy pretext or other Mowanna, the king of Nukuheva, whom the invaders by extravagant presents cajoled over to their interests, and move about like a mere puppet, has been set up as the rightful sovereign of the entire island--the alleged ruler by prescription of various clans, who for ages perhaps have treated with each other as separate nations.
The meat is none of mine to sell,” said Leather-Stocking, adopting a little of his companion’s hauteur; “for my part, I have known animals travel days with shots in the neck, and I’m none of them who’ll rob a man of his rightful dues.
Bills have repeatedly been brought into Congress for the purpose, but without success; and our rightful possessions on that coast, as well as our trade on the Pacific, have no rallying point protected by the national flag, and by a military force.
His native coolness, shrewdness, and deliberateness, his life-long submissiveness to the sentiment that words were acts and acts were steps in life, and that in this matter of taking steps curveting and prancing were exclusively reserved for quadrupeds and foreigners--all this admonished him that rightful wrath had no connection with being a fool and indulging in spectacular violence.
What your father will say I don't know," she continued; "for he's been talking about the wedding up at Rolliver's and The Pure Drop every day since, and about his family getting back to their rightful position through you--poor silly man