DEFINITION of '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 warrant. These rights are typically distributed to existing shareholders, who have the ability to trade these rights on an exchange.
INVESTOPEDIA EXPLAINS 'Share Purchase Rights'
The rights only give shareholders the ability to purchase the shares, but they must still must pay for the shares to redeem the rights.
Shares of stock that are trading but no longer have rights attached ...
A security giving stockholders entitlement to purchase new shares ...
A unit of ownership interest in a corporation or financial asset. ...
A privilege provided to existing shareholders in a company when ...
A corporate structure in which a single legal entity is comprised ...
Shareholders who hold their shares directly with a company.