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LSDefine

Simple English definitions for legal terms

rights offering

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A quick definition of rights offering:

A rights offering is when a company gives its current shareholders the chance to buy more shares of stock at a fixed price. This price is usually lower than what the stock is currently worth. Shareholders can buy more shares in proportion to the number of shares they already own. This is called a privileged subscription. It's like a special sale just for the people who already own part of the company.

A more thorough explanation:

A rights offering is a type of securities offering where a company issues stock-purchase rights to its existing shareholders. These rights allow shareholders to buy newly issued stock at a fixed price, usually below market value, and in proportion to the number of shares they already own.

For example, if a company has 100,000 shares outstanding and decides to issue 10,000 new shares through a rights offering, each shareholder would receive one right for every ten shares they own. If a shareholder owns 100 shares, they would receive 10 rights, which would allow them to purchase 10 new shares at the fixed price.

The purpose of a rights offering is to give existing shareholders the opportunity to maintain their proportional ownership in the company and to raise capital without diluting their ownership. It is also a way for companies to reward their loyal shareholders by offering them the chance to purchase new shares at a discounted price.

rights off | rights on

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Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
14:19
I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
WorthlessAttractiveZombie
14:28
What are the odds that berk releases later today?
babycat
14:28
@Dkk: And here I thought you were a prophet. Smh.
14:33
@WorthlessAttractiveZombie: 4
WorthlessAttractiveZombie
14:35
@EvolBunny: I will take the odds of 4, very promising
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