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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 MatchesTrade-related intellectual property rightsTrade-related intellectual property rightsThis was the term used for bringing intellectual property protection into the Uruguay Round of trade negotiations under the pretense that only trade-related aspects of the issue would be included. In practice, that did not constrain the coverage of the resulting agreement. Ex rightsEx rightsShares of stock that are trading without rights attached. Rights OfferingRights OfferingA popular means of raising capital by offering shareholders the opportunity to buy additional shares of the same stock at a price below the current market value. Rights onRights onShares trading with rights attached to them. Surface RightsSurface RightsThe rights (easements) to use the surface of land, including the right to drill or mine through the surface when subsurface rights are involved. Further SuggestionsProperty rightsEx rights date Special Drawing Rights (SDR) protected rights Voting rights ex rights Cum rights Appraisal rights Rights Agreement (aka "Poison Pill") rights offering cum rights Rights offering |
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