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Related to Negative right: Positive 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
explaining positive rights and distinguishing them from negative rights;
She held that negative rights are moral concepts since they serve to subordinate society to the moral law that governs individuals.
In defense of this conclusion, I note that alleged positive rights--unlike negative rights against immoral and active harm--are neither truly universal nor reciprocal, and thus they are not natural rights, which, by virtue of being natural, apply to all people against all people in all circumstances.
There are three interrelated justifications for favouring the enforcement of negative rights in Canada.
--Because trademarks' exclusive rights can be characterized as negative rights, there can be no positive rights of trademark owners at all, including to use.
While fundamental rights as negative rights protect individual freedom against the state, the duty to protect derived from fundamental rights is designed to protect fundamental rights against threats and risks stemming not only from the state but from private actors or societal forces or even social developments that are controllable by state action.
the rights are primarily negative rights rather than positive rights; not swords but shields.
Sure sentiment may be negative right now but expectations are not low.
Nevertheless, he does hold that human dignity equates to a right to life, and that a negative right to health can be derived from that right.
"They are not carbon negative right now but the concept of being carbon negative includes that," he stated.
The freedom of health, by contrast, is a mostly negative right that
As long as the remedy initially allows the legislature to fashion the curative legislation, the imposition of a remedy is [arguably] even less intrusive than where a negative rights violation is involved." (388) This conclusion follows because the legislature when addressing a negative right prohibits the legislature's action entirely; however, when approaching a positive right, the court need only set the legislative process back in motion and allow the legislature to operate with broad discretion in fulfilling the constitutional rights, bounded only by certain limited parameters.

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