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Rights

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Dictionary Says

Definition of '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 number of shares already owned. Rights are issued only for a short period of time, after which they expire.
Investopedia Says

Investopedia explains 'Rights'

This also known as "subscription rights" or "share purchase rights".

Related Definitions

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    Distribution

    1. When trading volume is higher than that of the previous day without any price appreciation. 2. The removal of assets from a retirement account. The assets are then paid to the ...
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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 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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    • Share Purchase Rights

      A type of security that gives the holder the option, but not the obligation, to purchase a predetermined number of shares at a predetermined price. This is similar to a stock option or ...
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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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    • Contingent Value Rights - CVR

      A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if a specified event occurs. A ...
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    • Oversubscription Privilege

      A privilege provided to existing shareholders in a company when the company issues a rights or warrants offering. This enables shareholders to "subscribe" to purchase extra shares that ...
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    • Theoretical Ex-Rights Price

      The market price that a stock will theoretically have following a new rights issue. Although the stock price is not likely to change immediately following the new rights issue, it will ...
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    • Subscription Right

      The right of existing shareholders in a company to retain an equal percentage ownership over time by subscribing to new stock issuances at or below market prices. The subscription right ...
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    • Antidilutive

      A term describing the effects of securities retirement, securities conversion or corporate actions (such as acquisitions made through the issuance of common stock or other securities) on ...
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