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 periodicals archive ?
How far British politics has moved rightward was seen in David Dimbleby's reference, on BBC's Question Time, to student grants as "a gift" and not to be corrected by anyone on the panel or the audience.
Elsewhere, a separate survey appears to bolster the claim by rightwing rebels that they are speaking up on behalf of the nation as the centre-ground of British politics shifts rightwards.
Hypercapnia and acidaemia shifts the haemoglobin-oxygen dissociation curve rightwards augmenting the tissue release of oxygen (14).
On this view the median voter has moved rightwards, as evidenced in Conservative electoral success, and so vote-maximising social democratic parties must also move to the right.
And in so doing, he tilted the balance of power within his government decisively rightwards - and away from that fabled centre ground he has spent so long trying to cultivate.
He thus headed rightwards and entered as a party to the battle between Right and Left.
x][DELTA]t = 0 depending on whether the particle moves leftwards or rightwards.
Both moved rightwards, although Christopher became an internationalist while Peter seemed more concerned with matters of national concern to Britain.
Whereas in Inferno the pilgrims are descending "toward the bottom on the left" (Canto XIV), purgatorial ascent is repeatedly described as rightwards movement.