Rights Issue

Rights Issue - Rights Issue is the permission of a company or corporation to existing shareholders. The current shareholders status give them access to purchase shares of stock security of an issue of the common stock before the company offers the stock securities to the public domain. The stock security then offered at a discounted price to the current shareholders making the offer a worthwhile buy for the shareholder. When the stock security offered presented to the public the price will be for a higher yield to the company holder. Issuing rights only comes from the management staff through the holder of stock.


Rights Offering - Rights offering is a way of raising capital for a corporation. Offering shareholders company stock security at a discounted price for as long as they wish to hold the stock. Shareholders who currently hold stock in the corporation will have their stocks securities diluted over time because, of the transfer. The stock security is transferable, thus allowing the holder of the stock to sell on the open Stock Exchange for a fair market value. An employee of the company is not required to purchase any stock security but all have opportunity. Buying the stock security does afford the employee benefits.