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Rights issue |
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Rights issueAn offer made by a quoted company to its shareholders to enable them to buy new shares in the company at a discount to the market price.Existing shareholders are usually offered shares in proportion to their existing holding. For example in a one for five rights issue, a shareholder would be invited to buy one new share for every five shares already owned. The new shares are offered at a discount to the current market price and because of that the rights have a value in themselves and can be separately sold.For capital gains purposes, the shares acquired following a rights issue are deemed to have been acquired at the same time as the original shares.Shareholders who hold a company's shares in a PEP, ISA or SIPP account can only take up their rights if they have sufficient funds in those accounts to exercse the rights.Similar MatchesVoting rightsVoting rightsThe right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. Rights offeringRights offeringIssuance to shareholders that allows them to purchase additional shares, usually at a discount to market price. Holdings of shareholders who do not exercise rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them. Rights offerings are particularly common to closed-end funds, which cannot otherwise issue additional common stock. Ex rightsEx rightsShares of stock that are trading without rights attached. Appraisal rightsAppraisal rightsA right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently. Property rightsProperty rightsRights of individuals and companies to own and use property as they see fit and to receive the stream of income that their property generates. Further SuggestionsSurface RightsSpecial Drawing Rights (SDR) protected rights Rights Offering ex rights Trade-related intellectual property rights Ex rights date rights offering Cum rights cum rights Rights Agreement (aka "Poison Pill") Rights on |
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