rights issue
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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
rights issue
the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS at a price which is generally a little below the current market price. Rights are issued to existing shareholders in proportion to their existing shareholdings, and shareholders can sell their rights if they do not wish to subscribe for extra shares. Compare CAPITALIZATION ISSUE.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
rights issue
the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS at a price that is generally a little below the current market price. Rights are issued to existing shareholders in proportion to their existing shareholdings, and a shareholder can sell his or her rights if he or she does not wish to subscribe for extra shares. Compare CAPITALIZATION ISSUE.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005