Rights Offering (Issue)

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Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Rights Offering (Issue)'

Rights are often transferable, allowing the holder to sell them on the open market.

Related Definitions

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    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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  • Accelerated Bookbuild

    A form of offering in the equity capital markets. It involves offering shares in a short time period, with little to no marketing. The bookbuild of the offering is done vey quickly in ...
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  • Open Offer

    A secondary market offering that is similar to a rights issue in which a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price. ...
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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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    • Adjusted Closing Price

      A stock's closing price on any given day of trading that has been amended to include any distributions and corporate actions that occurred at any time prior to the next day's open. The ...
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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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    • Follow-On Offering

      An issue of shares of stock that comes after a company has already issued an initial public offering (IPO). A follow-on offering can be diluted, meaning that the new shares will lower a ...
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