Share Purchase Rights
A type of security that gives the holder the option, but not the obligation, to purchase a predetermined number of shares at a predetermined price. This is similar to a stock option or warrant. These rights are typically distributed to existing shareholders, who have the ability to trade these rights on an exchange. Investopedia Says:
The rights only give shareholders the ability to purchase the shares, but they must still must pay for the shares to redeem the rights. Related Terms:
Oversubscription Privilege
Rights
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