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
References in periodicals archive ?
The record figure of 2007-08 is a rapid recovery from the $4.6 billion raised through rights issues in the previous year when a fall in the region's stock markets undermined plans for wider capital raising through secondary share issues.
Forty-seven per cent of all Gulf rights issues over the last year were issued by banks and financial services companies.
Under the terms of the rights issue, the average investor with 374 will have to pay pounds 409.75p to take up a full entitlement of 149 new shares.
Assuming shareholders approve the rights issue at a general meeting on June 26 in Edinburgh, these investors must return the forms by July 11 if they wish to take part in the rights issue.
The strongest chapters of the book explore how some blacks tried to make interracial intimacy into a civil rights issue, and the limitations of this form of politics.
Black women often criticized the tendency of black men to see interracial intimacy as a civil rights issue, instead insisting that who one dated and married was a private matter.
A rights issue gives the shareholder the right but not the obligation to buy new shares in proportion to the number of shares he or she already owns in a company.
This is a l-for-4 rights issue. The owner of the 4 shares may purchase another at 400p.
The share price should theoretically fall to a level that reflects the weighted average of the old shares at their market price prior to issue, and the new shares at the rights issue price.
Panin Life will offer rights issues of 148 shares valued at Rp 500 per share hoping to raise Rp 74 billion in fresh fund.
A company's statement said that the rights issues offered by Panin Bank alone are estimated to amount to Rp 401 billion.
Rashed Al Balooshi, CEO of ADX, said, "This is an important moment for the market and we welcome the decision by ADIB to initiate a rights issue as part of their capital raising programme.

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