Rights issue
A type of corporate action that aims to raise money for a company. In a rights issue, a company offers its existing shareholders the right to buy new shares at a discount to the market price.
The more shares you already hold, the more new shares you’ll have the right to buy. Rights issues are considered to be a type of option, since it gives a company's stockholders the right, but not the obligation, to buy additional shares in the company.
Rights are often transferable, allowing the holder to sell them in the open market.
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