What is the meaning of rights issue?

noun

  • An offering of common stock to existing shareholders who hold subscription rights or pre-emptive rights that entitle them to buy newly issued shares at a discount from the price at which they will be offered to the public later.
    • usage: "the investment banker who handles a rights offering usually agrees to buy any shares not bought by shareholders"
WordNet 3.0 © 2006 by Princeton University
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APAWordNet. (2010). rights issue. Retrieved September 20, 2026, from http://smartdefine.org/rights_issue/definitions/1306968
ChicagoWordNet. 2010. "rights issue" http://smartdefine.org/rights_issue/definitions/1306968 (accessed September 20, 2026).
HarvardWordNet 2010, rights issue, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/rights_issue/definitions/1306968>.
MLAWordNet. "rights issue" 23 October 2010. Web. 20 September 2026. <http://smartdefine.org/rights_issue/definitions/1306968>