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Rights

   Also found in: Dictionary/thesaurus, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia, Hutchinson 0.05 sec.
Rights
Informal for subscription rights. In stock, the ability of a shareholder to maintain the same percentage of ownership in a company should the company issue more stock by subscribing to 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. See also: Anti-dilution provision.


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