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 classic literature ?
Reach not after morality and righteousness, my friends; watch vigilantly your stomach, and diet it with care and judgment.
Cold" Boston was alive with the fire that is always hot in her heart for righteousness and truth.
Hear us when we pray to Thee; strengthen with Thy might our most gracious sovereign lord, the Emperor Alexander Pavlovich; be mindful of his uprightness and meekness, reward him according to his righteousness, and let it preserve us, Thy chosen Israel
Tyke: such sermons would be of no use at Lowick--I mean, about imputed righteousness and the prophecies in the Apocalypse.
When the author came to revise the material, he found sins against taste which his zeal for righteousness could not suffice to atone for.
Deep in the soul of every man," said Tarzan, "must lurk the germ of righteousness.
Lynde's quilts, and hoped that the loan of them might be accounted unto her for righteousness.
A man will lie for a woman's sake, and even in the law courts, certainly at his clubs and amongst his friends, it will be accounted to his righteousness.
And Jerry, far-journeyer across life and across the history of all life that goes to make the world, strugglingly mastering the abysmal slime of the prehistoric with the love that had come into existence and had become warp and woof of him in far later time, his wrath of ancientness still faintly reverberating in his throat like the rumblings of a passing thunder-storm, knew, in the wide warm ways of feeling, the augustness and righteousness of Skipper.
His name on the passenger list does not matter, but his other name, Captain Malu, was a name for niggers to conjure with, and to scare naughty pickaninnies to righteousness from New Hanover to the New Hebrides.
     "Now righteousness consisteth not merely in a holy state of
I knew well the noble nature of Bishop Morehouse, and I could not conceive that his voice raised for righteousness would be no more than a little inadequate wail.