DEFINITION of 'Piggyback Registration Rights'

A form of registration rights that grants the investor the right to register his or her unregistered stock when either the company or another investor initiates a registration. This type of registration right is seen as inferior to demand registration rights, because this class of right-holders cannot initiate the registration process.

BREAKING DOWN 'Piggyback Registration Rights'

Since piggyback rights are considered inferior to demand registration rights they are sometimes excluded from registrations in favor of investors with demand registration rights. This could happen when the underwriter of the registration determines that the market will not be able to handle all of the shares part of the registration. However investors with piggyback rights are allowed to participate usually in an unlimited number of registrations, compared with investors who have demand registration rights.

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RELATED FAQS
  1. How does piggyback registration work?

    Registration rights ensure that companies cooperate during the registration process through which investors register shares ... Read Answer >>
  2. How long is the validity period for a Series 63 exam if I have not been registered?

    Find out how registration begins using Series 63 results and how long scores are valid without registration. Learn more about ... Read Answer >>
  3. If an issuer wishes to register a security in the state ...

    The correct answer is a. Registration by coordination is permitted when the issuer has filed a registration application with ... Read Answer >>
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    CFA Institute provides prospective CFA candidates with a couple registration options.1) Online Registration: This is the ... Read Answer >>
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    The correct answer is d) Rule 147 is a rule that allows for intrastate offerings to be exempt from the requirements of full ... Read Answer >>
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