Renounceable Right

Filed Under » Stocks

	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.
	Investopedia explains '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.

Related Definitions

Rights

A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the ...
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Rights Offering (Issue)

Issuing rights to a company's existing shareholders to buy a proportional number of additional securities at a given price (usually at a discount) within a fixed period.
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XRT

A notation on a ticker tape that is used to indicate that a security is trading on an ex-rights basis. The term is used to dispel any confusion that may arise in the case of trades ...
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- Cum Rights
  
  A situation in which the shares held by holders of record are qualified for a rights offering declared by a company.
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- Ex-Rights
  
  Shares of stock that are trading but no longer have rights attached because they have either expired, been transferred to another investor or been exercised. The rights originally ...
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- Rights of Accumulation - ROA
  
  A right that allows a shareholder to receive reduced sales charges when the amount of mutual funds purchased, plus the amount already held, equals an ROA breakpoint. In addition, there ...
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- Non-Renounceable Rights
  
  An offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount). Unlike a renounceable right, a non-renounceable right is not ...
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Introduction To Convertible Preferred Shares

These securities offer an answer for investors who want the profit potential of stocks but not the risk.
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Understanding Rights Issues

Not sure what to do if a company invites you to buy more shares at discount? Here are some of your options.
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