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A right attached to a security that one may buy or sell separately from that security. The right is usually the ability to buy more shares in a publicly-traded company at a discount, especially after a new issue of stock that would otherwise dilute the stockholder's holding. If one sells a renounceable right, its buyer receives this ability. It differentiates from a nonrenounceable right, which always must remain attached to the security with which it was originally issued.
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