Series 14: 6.1.3.2. Rights Offerings

6.1.3.2. Rights Offerings

Sometimes companies decide to raise money by carrying out a rights offering, in which the company sells new shares to current shareholders only. Current shareholders are offered the right to purchase enough additional stock to keep their ownership in the company proportionate to what it was before the rights offering. The rights granted in a rights offering may be referred to as subscription rights or simply rights.

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