What does rights issue mean?

Definitions for rights issue
right·s is·sue

This dictionary definitions page includes all the possible meanings, example usage and translations of the word rights issue.

Princeton's WordNet

  1. rights offering, rights issuenoun

    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

    "the investment banker who handles a rights offering usually agrees to buy any shares not bought by shareholders"

Wikipedia

  1. Rights issue

    A rights issue or rights offer is a dividend of subscription rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it can be a non-dilutive pro rata way to raise capital. Rights issues are typically sold via a prospectus or prospectus supplement. With the issued rights, existing security-holders have the privilege to buy a specified number of new securities from the issuer at a specified price within a subscription period. In a public company, a rights issue is a form of public offering (different from most other types of public offering, where shares are issued to the general public). Rights issues may be particularly useful for all publicly traded companies as opposed to other more dilutive financing options. As equity issues are generally preferable to debt issues from the company's viewpoint, companies usually opt for a rights issue in order to minimize dilution and maximize the useful life of tax loss carryforwards. Since in a rights offering there is no change of control and a "no-sale theory" applies, companies are able to preserve tax loss carry-forwards better than via either follow-on offerings or other more dilutive financings. It's one of the types in modes of issue of securities both in public and private companies.

ChatGPT

  1. rights issue

    A rights issue is a method by which publicly traded companies raise additional capital from existing shareholders. The company offers additional shares to existing shareholders at a discounted price, usually in proportion to the number of shares they already own. The shareholders then have the "right" to purchase the additional shares within a set time frame. This allows the company to raise money quickly without incurring additional debt.

Wikidata

  1. Rights issue

    A rights issue is an issue of rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it is a way to raise capital under a seasoned equity offering. Rights issues are sometimes carried out as a shelf offering. With the issued rights, existing security-holders have the privilege to buy a specified number of new securities from the firm at a specified price within a specified time. In a public company, a rights issue is a form of public offering. Rights issues may be particularly useful for Closed-End Companies, which cannot retain earnings, because they distribute essentially all of their realized income and capital gains each year; therefore, they raise additional capital through rights offerings. As equity issues are generally preferable to debt issues from the company's viewpoint, companies usually opt for a rights issue when they have problems raising equity capital from the general public and choose to ask their existing shareholders to buy more shares.

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Numerology

  1. Chaldean Numerology

    The numerical value of rights issue in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of rights issue in Pythagorean Numerology is: 1

Examples of rights issue in a Sentence

  1. Benjamin Crump:

    It doesn't have to be one against the other, we all want better policing, this is an American issue, this isn't a police issue or a civil rights issue.

  2. Saifuddin Abdullah:

    We are looking at the Palestinian issue not simply from the religious point of view... it is a humanitarian, human rights issue, it is about fighting on behalf of the oppressed.

  3. Teguh Putra Hartanto:

    If these rights issue and capital injection do roll out, loan growth should be accelerated. Jokowi will need this loan growth to support his GDP growth target of 7 percent.

  4. Susan Mizner:

    This is a disability rights issue, students with health conditions or disabilities that make them vulnerable to COVID have a right to attend school without endangering their health or safety. Schools who have children with these conditions have legal obligations under federal disability rights laws.

  5. Shelby Quast:

    This is a human rights issue. The girl's life is very much in danger.

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"rights issue." Definitions.net. STANDS4 LLC, 2024. Web. 31 May 2024. <https://www.definitions.net/definition/rights+issue>.

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