rights offerings

rights offerings
USA
An offering that provides an issuer's existing stockholders the opportunity to buy a pro rata portion of additional shares of stock. These additional shares are offered at a specific price per share (the subscription price), which is typically set at a discount to the recent trading price of the issuer's stock. A rights offering provides a capital raising opportunity which is not dilutive to existing stockholders. The rights are often transferable, allowing the holder to sell them on the open market.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Rights offering — 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,… …   Financial and business terms

  • rights offering — Issuance 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… …   Financial and business terms

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  • Subscription Price — 1. A static price at which existing shareholders can participate in a rights offering conducted by a public company so they may retain their proportional ownership of the business. The subscription price will be the same for all shareholders and… …   Investment dictionary

  • Subscription Right — The right of existing shareholders in a company to retain an equal percentage ownership over time by subscribing to new stock issuances at or below market prices. The subscription right is usually enforced by the use of rights offerings, which… …   Investment dictionary

  • SEC Form CB — A filing with the Securities and Exchange Commission (SEC) required when engaged in specified tender offers, rights offerings or business combinations with a foreign private issuer with less than 10% of its securities held by U.S. persons. SEC… …   Investment dictionary

  • Form F-4 — is an American Form used to register securities in connection with business combinations and exchange offers involving foreign private issuers. These activities include mergers acquisitions, going private transactions, rights offerings, and other …   Wikipedia

  • Adjusted Closing Price — A stock s closing price on any given day of trading that has been amended to include any distributions and corporate actions that occurred at any time prior to the next day s open. The adjusted closing price is often used when examining… …   Investment dictionary

  • Index Divisor — A number used in the denominator of the ratio between the total value of an index and the index divisor. The number, which typically has little mathematical rationale behind it, remains consistent and therefore enables comparability within the… …   Investment dictionary

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