Piggyback Registration Rights
A form of registration rights that grants the investor the right to register his or her unregistered stock when either the company or another invester initiates a registration. This type of registration right is seen as inferior to demand registration rights, because this class of right-holders cannot initiate the registration process. Investopedia Says:
Since piggyback rights are considered inferior to demand registration rights they are sometimes excluded from registrations in favor of investors with demand registration rights. This could happen when the underwriter of the registration determines that the market will not be able to handle all of the shares part of the registration. However investors with piggyback rights are allowed to participate usually in an unlimited number of registrations, compared with investors who have demand registration rights. Related Terms:
Initial Public Offering - IPO
New Issue
Prospectus
Registration
Underwriting |