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 ?
Former Giants No2 Kieron Purtill, who has been the right-hand man to Daniel Anderson and Potter, is expected to stay on as Simmons' assistant, but Saints have added captain Keiron Cunningham to their coaching staff for next season.
Former Leigh utility back Kieron Purtill, who has been the right-hand man to Daniel Anderson and Potter, is expected to stay on as Simmons' assistant but Saints have added captain Keiron Cunningham to their coaching staff for next season.
He was the right-hand man of Northern Irish drug dealer William Lees, who was jailed for 25 years after being found guilty of the same offences.
But the months of acrimonious debate leading up to the school board's December 16 decision in favor of the school's name proves that the antigay prejudice that kept Rustin behind the scenes as Martin Luther King Jr.'s right-hand man still lingers.
Tord Grip, Eriksson's right-hand man, was at Upton Park to witness the show, which also saw Michael Carrick put in another mature performance and goalkeeper David James keep a clean sheet.
So his decision to quit as Prince Charles' right-hand man is a devastating blow to the heir to the throne.
The mare has now won two of her last three starts and Mark Birch, Ryan's right-hand man, said: "She's a grand mare and is very genuine."
And then there's the condescending tone that turns up throughout the book: "Readers may choose words at their own levels of understanding and commitment"; writers using biased words like right-hand man "leave their readers as uninspired as they are." Under "Amazon/amazon": "Use the term only if you understand its history and multiple connotations." And my favorite: "If you must think in halves.
Major General Alexander McDougall was George Washington's right-hand man in the War of Independence and became president of the Bank of New York, the city's oldest financial institution.
BRIAN KIDD, Sir Alex Ferguson's right-hand man during his first successes at Manchester United, is rarely mentioned by his old gaffer after having the temerity to leave for the Blackburn manager's job in 1998.
Dennis, who's been in charge since 1981, will hand over the reins to his long-standing right-hand man and CEO Martin Whitmarsh.
THE firebrand preacher once described as "Osama bin Laden's right-hand man in Europe" will be freed on bail in the next 24 hours, it was confirmed yesterday.