Piggyback Registration Rights

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. SEC Form PREC14A

    A filing with the Securities and Exchange Commission (SEC) that ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  3. Underwriting

    1. The process by which investment bankers raise investment capital ...
  4. New Issue

    A reference to a security that has been registered, issued and ...
  5. Prospectus

    A formal legal document, which is required by and filed with ...
  6. Piggyback Warrants

    Additional warrants that are acquired following the exercise ...
Related Articles
  1. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  2. A Look At Primary And Secondary Markets
    Investing Basics

    A Look At Primary And Secondary Markets

  3. Interpreting A Company's IPO Prospectus ...
    Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  4. 5 Tips For Investing In IPOs
    Investing

    5 Tips For Investing In IPOs

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center