Share Purchase Rights


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.


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BREAKING DOWN '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.

  1. Rights

    A security giving stockholders entitlement to purchase new shares ...
  2. Oversubscription Privilege

    A privilege provided to existing shareholders in a company when ...

    A unit of ownership interest in a corporation or financial asset. ...
  4. Ex-Rights

    Shares of stock that are trading but no longer have rights attached ...
  5. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  6. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
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