Rights Offering

Share on Facebook Share on Twitter Email
offering of common stock to existing shareholders who hold rights that entitle them to buy newly issued shares at a discount from the price at which shares will later be offered to the public. Rights offerings are usually handled by investment bankers under what is called a standby commitment, whereby the investment bankers agree to purchase any shares not subscribed to by the holders of rights.
See also oversubscription privilege; preemptive right; Subscription Right.

Previous:Right of Survivorship, Right of Rescission
Next:Ring, Ring Fence

Post a question - any question - to the WikiAnswers community:

Copyrights:

Mentioned in

Subscription Price (business term)
Right (in accounting)
Record Date (in banking)
Stock Split (in banking)
Medis Technologies Ltd. (Public Company)