Rights Offering
/ˈraɪts ˈɒfərɪŋ/
Definitions
- (n.) An offering by a corporation to its existing shareholders allowing them to purchase additional shares, typically at a discount, before shares are offered to the public.
The company conducted a rights offering to raise capital while giving current shareholders priority.
Forms
- rights offering
- rights offerings
Related terms
See also
Commentary
Rights offerings are often used to raise capital without diluting existing shareholders’ ownership percentage by giving them a preferential subscription right.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.