rights issue

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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.

rights issue

the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS at a price which is generally a little below the current market price. Rights are issued to existing shareholders in proportion to their existing shareholdings, and shareholders can sell their rights if they do not wish to subscribe for extra shares. Compare CAPITALIZATION ISSUE.

rights issue

the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS at a price that is generally a little below the current market price. Rights are issued to existing shareholders in proportion to their existing shareholdings, and a shareholder can sell his or her rights if he or she does not wish to subscribe for extra shares. Compare CAPITALIZATION ISSUE.
References in periodicals archive ?
The session covered how the rights issue process will work and how brokers can best advise their clients to exercise their rights.
He also added that they would like to see the progress in human rights issues.
The rights issue would increase financial solvency and further improve its credit rating, which would allow it to compete for mega projects both locally and internationally, the statement said.
Unfortunately, the westerners have a completely double-standard look at human rights issues and use them as a tool against the countries which don't depend on them," Amoli Larijani said in a meeting with Sri Lankan Justice Minister Rauff Hakeem in Tehran at the time.
The Rights Issue is fully underwritten by Patersons Securities Limited and will result in the issue of 131,545,267 Rights Issue Shares and 32,886,316 Rights Issue Options, to raise A$5,261,810 before costs.
PA) (LSE: BNP) (OTC: BNPQY) were the joint lead underwriters for the H-share rights issue.
It said rights issues by GCC-based companies are mostly being used to fund regional and international expansion unlike British companies that are using rights issues to repair balance sheets damaged by the credit crunch.
Their backing will be crucial as HBOS looks to strengthen its financial base by inviting investors to take part in a rights issue and buy additional shares.
Lubin begins Romance and Rights by explaining how World War II enabled interracial intimacy to become viewed as a civil rights issue.
It is, therefore, important for private investors to seek expert advice before committing themselves to any rights issues.
Panin Insurance itself will offer its third rights issues of 231.
Jazeera Airways Group today (20 January) announced the successful closing of its rights issue of 178 million shares, effectively raising the company's capital by 74 per cent to KWD 42 million.

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