Renounceable Right


DEFINITION of 'Renounceable Right'

An offer issued by a corporation to shareholders to purchase more shares of the corporation's stock (usually at a discount). Renounceable rights have a value and can be traded.

BREAKING DOWN 'Renounceable Right'

Stockholders that have received renounceable rights have three choices of what to do with the rights. They can act on the rights and buy more shares as per the particulars of the rights issue; they can sell them on the market; or they can pass on taking advantage of their rights.

  1. Rights Offering

    An issue of rights to a company's existing shareholders that ...
  2. Cum Rights

    A shareholder of record that qualifies for a rights offering ...
  3. XRT

    A notation on a ticker tape that is used to indicate that a security ...
  4. Rights

    A security giving stockholders entitlement to purchase new shares ...
  5. Ex-Rights

    Shares of stock that are trading but no longer have rights attached ...
  6. Rights of Accumulation - ROA

    A right that allows a shareholder to receive reduced sales charges ...
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