Rights Issue
Definition
An offering that gives existing shareholders the right to purchase additional shares at a discounted price, usually in proportion to their current holdings, allowing them to maintain ownership percentage.
Example
A rights issue allows current shareholders to maintain their ownership percentage by buying new shares at a discount.
Related Terms
Frequently Asked Question
What is a Rights Issue?
A rights issue gives existing shareholders the right to buy additional shares at a discounted price, proportional to their current holdings, enabling them to maintain their ownership stake.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.