See: Preemptive Right.
The sale of new shares of COMMON STOCK by distributing STOCK PURCHASE RIGHTS to a firm's existing shareholders. This is also termed a privileged subscription. See also RIGHTS, STOCK.
an offering of stock to current shareholders that entitles them to purchase the new issue, usually at a discount.
Offering of additional shares, usually at a discount, to existing shareholders who have rights to those shares. The shares can be actively traded.
The sale of new shares of common stock brought about by distributing stock purchasing rights to a firm's existing stockholders.
Distribution to existing shareholders of rights to purchase additional shares as part of a primary offering. A company uses a rights offering when it raises capital by selling new shares to existing shareholders rather than to the entire investment community. The number of rights a shareholder receives is based on the number of shares the holder owns. Rights offerings are generally public offerings unless offered only to sophisticated investors or QIBs in a private placement.
Offering of common stock to investors who currently hold shares which entitle them to buy subsequent issues at a discount from the offering price.
The issuing of rights to current shareholders to buy a proportionate number of additional securities at a discounted price within a certain time period.
an initial public offering in which Safeguard shareholders get first crack at shares in a private Safeguard-owned firm
an opportunity given to existing shareholders to buy additional shares of stock in the corporation
Method used by a company to obtain additional capital involving the issue and sale of new shares, generally to current shareholders, at a price usually less than the last market price.
Rights are a special type of option that have a short market life (usually no more than a few weeks). The right enables the shareholder to buy shares of the new issue at a specified price prior to sale publicly. Rights also have intrinsic value: they can be sold in the open market separate from the original stock.
An offering of additional shares of common stock to existing shareholders. A rights offering allows shareholders to purchase additional shares, usually at a discount price.
An offering that gives each shareholder an opportunity to maintain a proportionate ownership in the company before the shares are offered to the public.
An offering of common stock to existing shareholders who hold rights that entitles them to buy newly issued shares at a discount price at which shares will later be offered to the public.
Allowing current shareholders to purchase additional shares.
An offering of securities made only to persons who are already owners of the company's securities. The name comes from the day when it was common for a company's charter to give current holders the first right to acquire new issues. That provision is rare today, but many corporations find they can raise all the capital they need by asking their existing shareowners if they would like to buy more.
Issuance of "rights" to current shareholders allowing them to purchase additional shares, usually at a discount to market price. Shareholders who do not exercise these 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.
An offering that gives each shareholder a chance to exercise his preemptive rights.
The issuing of rights, to existing shareholders of a security, to buy a proportional number of additional securities at a given price (usually at a discount) within a fixed period.